10 Things Every Michigan Family Should Know About College Savings

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There are 10 things about college and saving for college that every Michigan family needs to know. This infographic design is a great visual explainer of how college savings works (it’s easier than you think), and what the state of Michigan is doing to help families.

You can click or tap on the visual below to enlarge it, and keep reading below this infographic design too where you’ll fund a written overview of how saving for college works in Michigan.

10 Things for Michigan Families to Know About Saving for College

1. By the end of the decade, 70% of jobs will require college degrees or some form of post-secondary education.

2. $33,000 is the average student debt per borrower for the graduating class of 2020.

3. $319K is the projected cost of a 4-year college degree at an in-state school in 2035.

4. A 529 plan offers your family a tax-advantaged way to save for college and other higher education expenses. Funds in a 529 plan can go to technical college or vocational school, college or university, trade school, study abroad programs, K-12 private school tuition, books, computers and school supplies, room and board, and even student loan debt.

5. Michigan Education Savings Program or MESP is Michigan’s direct-sold college savings plan. Any consumer can directly sign up or enroll in this plan online. There are no residency requirements.

6. Michigan Education Trust is a Prepaid Tuition Program is available only to Michigan families.

7. MI 529 Advisor Plan is Michigan’s advisor-sold 529 plan. MI 529 Advisor Plan is open to all U.S. residents, however, consumers can only sign up through a qualified financial advisor.

8. $500,000 is the plan’s maximum contribution limit. Contributions may be made until the balance of all Michigan 529 plan(s) for the same one individual reaches $500K. Funds already invested can remain in the plan(s) and continue to gain interest, but no additional funds may be contributed.

9. Michigan offers tax filers generous state tax benefits. Up to $10,000/yr may be claimed as a tax deduction for join filers. Single filers may claim up to $5,000/yr.

10. $18,648 is how much more you’ll save (or earn) for college by putting your savings for college into a 529 plan instead of a regular savings account at the bank.

You can also find more information in this article on Michigan 529 plan basics, or visiting MIsaves.com.

Michigan 529 plan accounts are eligible to be linked to the free Upromise Rewards program. Across the country, Upromise has helped families save over $1 Billion for college. Join free and earn cash rebates and other free cash rewards to save for college and your child’s 529 plan. Additionally, every month 5 Upromise members win a $529 scholarship.

*This assumes a 6% hypothetical rate of return for 529 plans compounded annually and assumes a 0.05% APY or annual interest rate for a savings account. The information in the infographic chart is for illustrative purposes. Funds invested in a 529 plan may see higher or lower rates of return than illustrated in this example.

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