10 Things Every New Jersey Family Should Know About College Savings

There are 10 things about college and saving for college that every New Jersey 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 New Jersey 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 New Jersey.

10 Things for New Jersey 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 college class of 2020.

3. $375K 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 related education expenses. Funds in a 529 savings 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 repayment.

5. NJBest 529 College Savings Plan is New Jersey’s direct-sold college savings plan and it is open only to residents of New Jersey.

6. Franklin Templeton 529 College Savings Plan is New Jersey’s advisor-sold 529 college savings plan and it has no residency requirements.

7.$300 per year is the minimum contribution that must be made to keep a NJ 529 account until total contributions in an account reach $1,200.

8. $305,000 is the plan’s maximum contribution limit. Contributions may be made until the balance of all New Jersey 529 plan(s) for the same one individual reaches $305K. Funds already invested can remain in the plan(s) and continue to gain interest, but no additional funds may be contributed.

9. New Jersey tax benefit: $1,000/yr for joint filers or $500/yr for single filers.

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

You can also find more information in this article on New Jersey 529 plan basics, or by visiting the NJBest website at njbest.com.

New Jersey 529 plans are eligible to be linked to the free Upromise Rewards program. Upromise has helped families save more than $1 Billion for their children’s college education. Join free and earn free cash rewards your child’s college. Additionally, every month there is a drawing for 5 Upromise members to win a free $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.

Check out these College Savings: 529 Plan Basics by State