National 529 Day encourages students to save for college

National 529 Day is recognized on May 29 (5/29) to encourage opening and using a 529 account. A 529 plan is a college-savings plan with tax advantages built in, sponsored by colleges, states, or institutions. 529 plans vary from state to state, and California offers the ScholarShare 529.  

ScholarShare 529 helps California residents set aside money and earn compound interest to be used for higher education, including undergraduate and graduate university in-state or around the world. Accounts can be opened for yourself, family, or even friends.  

While contributions to ScholarShare are not eligible for California or federal income tax deductions, the interest and capital gains accumulated are not taxed, account withdrawal spent on educational purposes–tuition, textbooks, laptops–is penalty and tax free, and owning an account has a low impact on financial aid qualifications compared to other savings accounts, such as a Roth IRA. To learn more about ScholarShare 529, click this link.  

The University of Redlands participates in the Private College 529 Plan along with nearly 300 private colleges across the United States. This is a prepaid tuition plan that enables families to pay for tuition at today’s prices at any member school for up to thirty years. With this 529 plan, families are protected from tuition increases and market fluctuations. Participants can enroll anytime, contribute as littles as $25 a month, and pay zero fees. This plan is beneficial to students who are certain of attending a private university while making costs more manageable. To learn more about Private College 529 Plan, click this link.  

In addition to opening a 529 account or other types of savings account, the U of R offers various types of financial aid that are either need-based or non-need based. Scholarships are awarded for a variety of reasons: academic achievement, service, talent, and more. To learn more about scholarships offered at the U of R and other scholarship opportunities, click this link.  

Grants are another form of financial award from federal, state, Redlands, and other organizations. These often have conditions that need to be fulfilled to continue being awarded the grant, such as maintaining a certain GPA. To learn more about grants at U of R, click this link.  

Loans are the third type of financial aid offered and have to be paid back within a certain timeframe, unlike scholarships and grants. Since loans accrue interest, it is important to understand types of loans, interest rates, payment period, and benefits. To learn more about loans at U of R, click this link.  

The Student Financial Services team encourages students to complete a FAFSA each year by the March 2 deadline to take advantage of all the financial aid opportunities available. To help make college more affordable, students can apply for outside scholarships. SFS provides outside scholarship resources on the Redlands website at this link. 

To learn more about financial aid at the U of R, click this link or contact Student Financial Services at sfs@redlands.edu or visit the SFS office in the Willis Center.   

Click here to learn more about National 529 Day and the College Savings Foundation.