Saving for College with the 529 Plan - Atlanta News, Weather, Traffic, and Sports | FOX 5

Saving for College with the 529 Plan

Posted: Updated:
ATLANTA -

May 29th is National 529 College Savings Day. It's a reminder why it's important to look into the state's "Path2College 529 Plan" for college savings.

First, let's look at what it is going to cost to send a child to college in 12 years. According to state stats, the prediction is that a four-year school can set you back more than $300,000. So, unless you win the lottery, you have to start saving early.

Ron Hart is a financial advisor with Morgan Stanley and he has served on the Tennessee Board of Regents. He says even student load debt today, not down the road, is hard to manage.

"Student loans are huge. Some students are leaving college with $100,000 in student loans. The average student loan debt is now, out of undergrad, $27,000. It's not dischargeable out of bankruptcy. It can plague you your entire life."

If you are not familiar with the Georgia's 529 college savings plan, it's time to get acquainted. Think 401K except it's available to anyone who wants to contribute. The "529 Plan" let's you make a deposit each pay period toward college costs. In Georgia, you can also deduct up to $2,000 each year, per student.

The sooner you get started the better. Even if it's just $50 a month for the next 10 years, the compounding interest adds up.

"The sooner you start compounding your money the better off you'll be long term especially if you compound it tax free which is the case of the 529," added Mr. Hart.

He said that college costs are going up twice the rate of inflation. In helping parents plan for their childrens' education, he's telling folks to think outside the box a bit -- consider a two-year community college. Think about taking a year off - a gap year - before heading to college to make sure you are ready to settle down before you go.

And, finally, think hard before going to a school with a high price tag for a degree where you simply are not going to get out and find a decent paying job in that field.

  • I-Team Story ArchiveMore>>

  • Whistleblower Seeks Sanctions Against Attorney General's Office

    Whistleblower Seeks Sanctions Against Attorney General's Office

    Friday, July 25 2014 9:59 PM EDT2014-07-26 01:59:29 GMT
    In a letter, obtained exclusively by the Fox 5 I-Team, former Ethics director Stacey Kalberman's plans to seek sanctions against the state Attorney General's office.
    More controversy involving the State Ethics Commission. In a letter, obtained exclusively by the Fox 5 I-Team, former Ethics director Stacey Kalberman's plans to seek sanctions against the state Attorney General's office.
  • FOX 5 I-Team Investigation

    State proposes action for home elevator safety

    State proposes action for home elevator safety

    Friday, July 25 2014 2:12 PM EDT2014-07-25 18:12:46 GMT

    The state is inching closer to closing a gap that should make residential elevators safer for children .It was the I-Team's stories about children nationwide being hurt that prompted the state to propose an emergency amendment to the state code.

    The state is inching closer to closing a gap that should make residential elevators safer for children .It was the I-Team's stories about children nationwide being hurt that prompted the state to propose an emergency amendment to the state code.

  • I-Team Investigation

    Former Douglas Co. D.A. office manager indicted

    Former Douglas Co. D.A. office manager indicted

    Friday, July 25 2014 12:30 PM EDT2014-07-25 16:30:44 GMT
    There are major new developments today in the state investigation of the Douglas County District Attorney's office. Tammy Agan, the former office manager, has been indicted on 58 counts of theft and making false statements.
    There are major new developments today in the state investigation of the Douglas County District Attorney's office. Tammy Agan, the former office manager, has been indicted on 58 counts of theft and making false statements.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

  • Good Day ArchiveMore>>

  • Back to School Jamboree with Hosea Feed The Hungry

    Back to School Jamboree with Hosea Feed The Hungry

    Hosea Feed the Hungry will host their annual Back to School Jamboree on Sunday, July 13, 2014 from 10:00 a.m. until 3:00 p.m. at Turner Field. Children will receive a backpack filled with school supplies.

    Hosea Feed the Hungry will host their annual Back to School Jamboree on Sunday, July 13, 2014 from 10:00 a.m. until 3:00 p.m. at Turner Field. Children will receive a backpack filled with school supplies.

  • Stars of 'Get On Up' The Story of James Brown, visit Good Day

    Stars of 'Get On Up' The Story of James Brown, visit Good Day

    Friday, July 25 2014 9:55 AM EDT2014-07-25 13:55:46 GMT
    In his follow-up to the four-time Academy Award®-nominated blockbuster The Help, Tate Taylor directs 42’s Chadwick Boseman as James Brown in GET ON UP.
    In his follow-up to the four-time Academy Award®-nominated blockbuster The Help, Tate Taylor directs 42’s Chadwick Boseman as James Brown in GET ON UP.
  • Good Day Atlanta

    Pike Nurseries: Attracting Hummingbirds

    Pike Nurseries: Attracting Hummingbirds

    Friday, July 25 2014 9:05 AM EDT2014-07-25 13:05:09 GMT
    Hummingbirds and other winged wildlife can add beautiful color and movement to a garden. You can enjoy the stunning sights and sounds of these featured friends, while also helping them access food, shelter, water and sunlight with hummingbird gardening.
    Hummingbirds and other winged wildlife can add beautiful color and movement to a garden. You can enjoy the stunning sights and sounds of these featured friends, while also helping them access food, shelter, water and sunlight with hummingbird gardening.
Powered by WorldNow

1551 Briarcliff Rd., NE
Atlanta, GA 30306

Main Number: (404) 875-5555
News Tips: (404) 898-0100

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices
.