529 accounts can help prevent the financial and emotional burden of student loans

Are there any products available today that can truly improve financial, career and mental well-being? Consider what a my529 college savings plan can do. Investing money in a my529 account today can help to reduce or eliminate the need for student loans later. Without the burden of student loans, you can increase the potential to:

Boost early income. Embarking on the adventure of your first job can be stressful enough without having to worry about a significant portion of that paycheck being encumbered by student loans. Students commonly believe they can worry about their student loans later. Unfortunately, the payments often come due simultaneous to other expenses in a young person’s life, like buying a car, relocating or setting up a new home. This is also when early investments have the greatest potential for growth over time. These factors can have a crucial influence on future wealth and quality of life.

Set a sturdy foundation for life. Gen X first experienced the burden of student loans, then Millennials, and now they shape how Gen Z views the value of certain degrees or schools, and even their ability to support a future family. For second-generation college graduates, their parents’ outstanding student loan debt could have affected how much money their family was able to set aside for them to attend school.

Find freedom and flexibility to optimize opportunities. Recent graduates likely saw their parents struggle economically during the Great Recession and, as such, understand that jobs are not distributed with diplomas. Allowing for some extra time to find the best position — rather than settling for just any job that will pay the bills — can boost lifetime earnings and accelerate career advancement. It can also give you the freedom to pursue a more fulfilling job, though it may pay less.

Reduce the potential to feel financially overwhelmed. Student loans — just like any financial debt — can increase stress and lead to life-long and far-reaching negative consequences. Not keeping up with student loan payments can ruin credit scores and result in garnished wages and Social Security benefits. Life can be challenging enough without the burden of student debt, especially when accruing interest makes it hard to make a meaningful dent in the balance owed.

Benefit from earnings — rather than accruing interest on a loan. If students can set aside money now in a my529 account, they could make compounding returns work to their advantage. Demonstrating how saving pays off is a beautiful lesson that can also help future generations. It is important to remember that, on average, students who graduate with postsecondary degrees see higher earnings, more career opportunities, and better health outcomes — making the cost of higher education even more worthwhile.

Help your student be part of the over 30% who graduate from higher education without student loans and reduce their financial, career and mental health burdens by investing early and often into a 529 college savings plan.

But how much should you save? Consult our College Savings Estimator to contrast expenses across multiple school categories (in-state vs. out of state, public vs. private) — or even compare specific schools once your student has narrowed it down to their favorites. You can customize predictions to include only tuition, or include books, room and board — or even projected personal expenses. Generate your personalized report to keep education savings on track and avoid the potential pitfalls of student loans.

Important Legal Notice

Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.

Investments in my529 are not insured or guaranteed by my529, the Utah Board of Higher Education, the Utah Education Savings Board of Trustees, any other state or federal agency, or any third party. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-Insured investment option. In addition, my529 offers investment options that are partially insured for the portion of the respective investment option that includes FDIC-insured accounts as an underlying investment.

The state in which you or your beneficiary pay taxes or live may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.

my529 does not provide legal, financial, investment or tax advice. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.