10 Things Every New York Family Should Know About College Savings

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

10 Things for New York 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. $254K 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. NY 529 College Savings Program is the state sponsored 529 college savings plan.

6. New York’s 529 Advisor Guided Savings Plan is the state’s advisor-sold college savings plan option.

7. Out of state enrollments are allowed for both of New York’s 529 college savings plans.

8. $520,000 is the plan’s maximum contribution limit. Contributions may be made until the balance of all New York 529 plan(s) for the same one individual reaches $520K. Funds already invested can remain in the plan(s) and continue to gain interest, but no additional funds may be contributed.

9. There are no residency requirements for either New York 529 plan. Anyone in the U.S. can enroll in either plan.

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 York 529 plan basics, or visiting NYSaves.org.

New York 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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