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Discover the
True Cost of College
(it's more than just tuition)

true cost of college

Saving for college starts with understanding the true cost of a post-secondary education. College expenses grow every year and include more than just tuition. Over the last 10 years, published in-state tuition and fees at public four-year universities increased at an average rate of 2.2% beyond inflation, according to the College Board.

Scroll down to see the national averages for one year at an in-state public university in 2019-2020.

One Year of College

There’s More To It Than Tuition


Tuition

26820

Room and Board

11510

Books and supplies

1240

Transportation

1230

Other Expenses

2170

Total

42970


This is the average total cost of college for a full-time in-state student at a public four-year university.

Financial Aid

Grants, loans and scholarships are harder to come by.
While costs continue to increase, financial aid has been decreasing.


Since 2010, annual college costs have increased 15% while available financial aid has decreased 12%.

    Sources:
  1. Trends in College Pricing 2019, CollegeBoard, 2019
  2. Trends in Student Aid 2019, CollegeBoard, 2019

Tax Benefits

Your Savings Can Grow Faster
Learn about the compounding effect of 529 tax benefits.


Taxable savings account vs. 529 savings

Two different families open a savings accounts with an initial deposit of $1,000 and opt for monthly contributions of $150. Both families save for 18 years, earning 7% on their investment.

The 529 plan earned over $10,000 more over 18 years than the taxable savings account.

These hypothetical examples are for illustrative use only and do not reflect an actual investment in any specific 529 plan. Families are assumed to be in the 24% tax bracket during contribution and distribution. The hypothetical examples assume a monthly contribution of $150, return on investment of 7% and no withdrawals during the 18 years. Actual returns may vary.

Tax Benefits State by State

Understanding the tax landscape
Get the most out of your state tax benefits.


New Mexico

Home of The Education Plan

Tax parity

These states offer tax deductions or credit for contributions to any 529 plan, regardless of state.

Tax neutral

These states do not offer tax deductions or credit for 529 contributions, or have no state income tax.

In-state tax benefit

These states offer tax deductions or credit for contributions to the
in-state 529 plan only.

Save Smart

No matter your educational path, 529s can help with the journey.
Planning ahead is the key.


Tips for Maximizing Your 529 Account
Start Early Consider contributing once your child is born rather than when they’re already at school age.
Make it a family affair Get help from friends and family to ensure you’re meeting education milestones. It’s an excellent legacy planning opportunity.
Consider higher contributions Maximizing your contributions can ensure that you have enough to fund any educational needs.
Ensure your investment strategy is aligned Choose an age-based solution or a custom investment solution based on your needs.

Don’t let the sticker price scare you. Most students will receive grants and other benefits to help pay the bill. The remainder can be covered with traditional savings, student loans or a 529 account, which has significant tax benefits and can be opened with as little as $1.

Research has shown that children with savings of just $500 are three times more likely to attend and four times more likely to graduate college. You got this. Get started today.

Open a 529 Account
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