RICHMOND, Va.– Families are shouldering the majority of college costs, with tuition and fees making up the lion’s share of the price tag. And with college costs continuing to rise every year, Virginia residents have an opportunity to protect their children and grandchildren from future higher education increases by enrolling them in Prepaid529, available for new enrollments now through March 31, 2018.
Each semester purchased will fund a future semester of full-time undergraduate in-state tuition and mandatory fees assessed to all students at a Virginia public two- or four-year institution. Students may use Prepaid529 at any eligible educational institution across the country, although payouts will differ.
Student loans are becoming the most common way to pay for college tuition, but the debt can have lasting effects on a college graduate’s financial situation, leading to postponement of milestones like buying a home or starting a family. But for more than 20 years, Virginia529 has helped families in the Commonwealth save for college and guard against escalating tuition costs.
The start of the enrollment period is timed to coincide with the holiday season and the December 31 deadline to qualify for a 2017 Virginia individual income tax deduction. Payments to a new or existing Prepaid529 account are deductible from Virginia individual taxable income, up to $4,000 per account per year. Any payments over $4,000 per year may be carried forward and deducted in future years.
A Prepaid529 calculator available at Virginia529.com illustrates the full array of price and payment options for a 2017-2018 contract. Families can try out various scenarios before deciding what works best for their goals and budget. The first payment is not due until May 1, 2018; however, payments made in 2017 will qualify for the 2017 Virginia tax deduction.
Visit Virginia529.com to enroll, learn more about the tax deduction and review the Prepaid529 Program Description and Master Agreement.
About Virginia529 College Savings Plan:
Virginia529 makes higher education more accessible and affordable for families and individuals. With more than $66 billion in assets under management and 2.6 million accounts as of September 30, 2017, Virginia529 is the largest 529 plan available. Three flexible, affordable, tax-advantaged programs–Prepaid529SM, Invest529SM and CollegeAmerica®–and early commitment scholarship program SOAR Virginia® assist students of any age in reaching their higher education goals. For more information on Virginia529’s college savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials. These include information on Virginia529 programs, investment objectives, risks, charges, expenses and other important information; read and consider them carefully before investing. All investments are subject to risk, including the possible loss of the money you invest. Virginia529 encourages prospective participants to seek the advice of a professional concerning any financial, tax or legal implications related to opening an account. For residents of states other than Virginia: before investing, you should consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protections from creditors that are only available for investments in that state’s qualified tuition program. ©2017 Virginia College Savings Plan. All Rights Reserved.
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