10 Things Every Minnesota Family Should Know About College Savings

image of Minnesota State Capitol Building
Posted on by

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

Minnesota 529 college savings plans infographic.

10 Things for Minnesota 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. $263K 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. Minnesota College Savings Plan is Minnesota’s state-sponsored college savings plan.

6. Out-of-state enrollments are permitted. Residents and non-residents of Minnesota may enroll in the Minnesota College Savings Plan.

7. $25 is the minimum contribution requirement to open a Minnesota 529 savings plan.

8. $425,000 is the plan’s maximum contribution limit. Contributions may be made until the balance of all Minnesota 529 plan(s) for the same one individual reaches $425K. Funds already invested can remain in the plan(s) and continue to gain interest, but no additional funds may be contributed.

9. Minnesota offers state tax benefits for 529 plan contributions. Up to $3,000/yr may be claimed by joint filers, or up to $1,500/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 Minnesota 529 plan basics, or checking out MNsaves529.org.

Minnesota 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.

Related Articles:



Check out these College Savings: 529 Plan Basics by State

Western 529 Plans

Southwest 529 Plans

Midwest 259 Plans

Northeast 529 Plans

Southeast 529 Plans

Other Plans