Celebrate 529 Day with the Tennessee Department of Treasury by understanding ‘Why Tennesseans save for college’
Nashville, TN – The Tennessee Department of Treasury annually recognizes 529 Day to raise awareness of the importance of saving for a child’s future education. May 29 is nationally recognized as 529 College Savings Plan Day, and TNStars is exploring statewide ‘Why Tennesseans save for college.’
We are featuring ambitious, college-bound children across the state, demonstrating the benefits of saving early while children are still young, versus borrowing and graduating with college debt.
“May 29 is an excellent annual reminder of the importance of saving for a child’s future in a 529 college savings account, such as TNStars,” said State Treasurer David H. Lillard, Jr. “Even at a time like this, the growth in the college savings movement is worth celebrating.”
The TNStars College Savings 529 Program makes it easy for Tennesseans to save for future higher education costs, whether you are a parent, grandparent, family member, employer, or friend.
“My parents saved for my siblings and me as we grew so that I was able to graduate from college debt-free thanks to their savings and my scholarships,” said Amy Anguish, parent of Chloe. “Having that freedom to start life unhindered was a huge blessing, and I would love to do the same for my children, too.”
“I am hearing stories of people who are graduating from college and universities with thousands of dollars in debt,” said Trina Lester, parent of Shaylin. “I want my daughter to be able to focus on getting a degree without the added hassle of having to work or worrying about debt piling up.”
Today, the total cost of one year of college, including room and board, averages $43,921 for a private, nonprofit school and $19,548 for a public, in-state school. Here’s an example of how saving with TNStars can help free families from the burden of loans: If you save $25 a week in a TNStars 529 account over 18 years, you would save $23,400. By adding the power of compounding interest, that $25 a week could add up to $42,000 for college. Compounding interest can work against you when borrowing. A family borrowing that same $42,000 could end up repaying almost $60,000. Our college savings calculator can help families decide how much they will need when it’s time for college.
“Having gone to a private school and accrued student loans that took 10 years too long to pay off, I know firsthand that it is important to think ahead about affording higher education,” Jennie Carter, parent of Ezra. “I hope to be able to provide my children some assistance in getting their degrees. The scholarship will be instrumental in doing so.”
With TNStars, earnings grow tax-free, and money can be used for tuition and fees, room and board, books, computers and more. Treasury monitors the plan’s investment options and works to keep costs low so families can save even more. The plan offers diverse investment options, low fees, and tax-free earnings, when funds are used to cover qualifying expenses. Families can visit tnstars.com to open an online account in minutes with as little as $25.
“As the first person in my family to attend and graduate from college, education is very important to me,” said Lindsay Jolly, parent of Annie. “Although I was able to make my dreams a reality, I am still facing the financial burden of student loans. I want Annie to be able to attend college and find a career she loves without having this burden.”
Join the conversation about 529 Day on Facebook, Twitter and Instagram (#529 Day #TNStars #TNSavesForCollege). For media outlets interested in geographic-specific information, TNStars county data can be made available by contacting Treasury Communications Director, Shelli King, at Shelli.King@tn.gov or (615) 202-0258.