Treasurer of State Kelly Mitchell announced that assets in the state’s tax-advantaged CollegeChoice 529 education savings plans have surpassed $6 billion, an increase of more than $3.1 billion since her tenure began in November 2014.
To date, over 397,000 accounts have been established, with an average account balance of $15,000. CollegeChoice 529 assists in reducing future generations’ education debt by offering incentive-driven savings options for parents and students. Education debt is one of the most significant issues facing Americans today. Outstanding student loan debt in Indiana held by approximately 875,000 Hoosiers is estimated at $28.7 billion.
“With CollegeChoice 529, we’ve created a flexible option for education savings, and the program’s family-friendly tax credit has appealed to so many Hoosier families, yielding excellent results,” said Treasurer Mitchell. “Hoosiers, now more than ever, are choosing to break the education debt cycle by saving in a 529. As we strive to make the next generation more prepared to compete in the global economy, every dollar saved today is one less dollar that needs to be borrowed later.”
CollegeChoice 529 enables account owners and gift contributors to save for a beneficiary’s education at any eligible school. Accounts can grow tax-free as long as the money is withdrawn to pay for qualified higher education expenses like tuition, room and board, books, computers and fees.
Indiana taxpayers may also be eligible for an annual state income tax credit of 20 percent of contributions to CollegeChoice 529 accounts, worth up to $1,000 each year.
“We know that education and investing are not ‘one-size-fits-all,'” said Marissa Rowe, Executive Director of the program. “That’s why you have a choice in Indiana. We offer three plans – Direct, Advisor, and CD, so you can find the option that works best for your family. Whether you’re thinking about graduate school, technical training, a four-year college, or an eligible apprenticeship program, you can start saving today with as little as $10.”
For more information, interested Hoosiers can visit www.collegechoicedirect.com/plans.