UA College Savings Plan Kicks In $50 for Each New Account Opened in September
The University of Alaska College Savings Plan is celebrating September
as College Savings Plan month by depositing $50 into each new account
opened and funded throughout the month.
"Parents with young children should consider that $100 deposited into
the plan each month, in addition to an annual Permanent Fund Dividend,
could grow to over $83,000* by the time that child graduates high
school," said Linda English, director of the UA College Savings Plan.
"Steady, tax-advantaged saving is painless and sets an expectation for
a child that college is desirable, doable and in their own best
Most jobs today require some level of education and job training
beyond a high school diploma. The UA College Savings Plan, a
nationally recognized 529 plan, can be used for a wide variety of
educational expenses at colleges, universities and trade schools
across the country, not just UA. While the poor worldwide economy
caused all investments to suffer this past year, financial experts
still agree that college savings plans are a great way to save for
According to the College Board, a non-profit membership association, a
working person with a four-year college degree typically earns over 60
percent more money than a worker with only a high school diploma.
The UA College Savings Plan helps thousands of Alaska families save
for future educational expenses. T. Rowe Price, a well-known financial
services provider, manages the plan on behalf of UA. Accounts in the
plan grow tax-free, and distributions from accounts are tax free when
used to pay for qualified educational expenses.
Investors can open an account with as little as $50. Over 18,500
Alaskans currently hold accounts. For more information, go to
uacollegesavings.com or call 1-888-4-ALASKA (1-888-425-2752).
*Assumes monthly contributions of $100 over 15 years, one PFD
deposited into the plan for each of those years, with an 8 percent
hypothetical rate of return compounded monthly.