Treasurer Garrity, Senator Dush, Representative Borowicz, and Lock Haven University Interim President Hanna encourage more families to save for their child’s future
Lock Haven, PA - Treasurer Stacy Garrity toured Lock Haven University today, along with Senator Cris Dush and Representative Stephanie Borowicz to promote the PA 529 College and Career Savings Program. The tour was led by Lock Haven University Interim President Dr. Bashar Hanna.
The visit included tours of the labs and classrooms of the East Campus Science Center, the new Student Success Center, which provides services including financial aid and financial literacy assistance, and the Willis Health Professions Building, home to Lock Haven University’s physician assistant program.
“Lock Haven students have so many great opportunities available to them. When families save with PA 529 accounts, they can realize these opportunities in a more affordable way. The PA 529 program gives families a way to save with big tax benefits, helping their children realize their goals and enter the workforce with less student debt. It’s never too early – or too late – to start saving.”
Pennsylvania State Treasurer, Stacy Garrity
“Providing students with an affordable, high-quality education, as well as offering numerous opportunities to combat financial obstacles while enrolled, are things we take great pride in at Lock Haven University. We thank Treasurer Garrity, Sen. Dush and Rep. Borowicz for their interest in and commitment to our students’ financial futures – not only while attending The Haven, but following graduation and beyond.”
Lock Haven University Interim President Dr. Bashar Hanna
“The PA 529 program is an excellent opportunity for families in the region to allow them to save for their children’s post-secondary education, regardless of the path they choose. The youth of our region are our number one commodity and by allowing families to utilize the PA 529 program, I hope that it will keep a large amount of our kids local with excellent educational opportunities, such as Lock Haven University and other schools in the region.”
Senator Cris Dush
“I had a great time joining Treasurer Garrity here on the campus of Lock Haven University to highlight the many generous tax benefits and flexibility of PA 529 college savings programs. For starters, PA 529 saving accounts can be used to pay for more than just tuition, including fees, equipment, books, room and board, and other qualified higher education expenses. Best of all, assets saved in PA 529 accounts have no impact on Pennsylvania state financial aid eligibility.”
Representative Stephanie Borowicz
In fiscal year 2020-21, more families than ever before opened PA 529 accounts and saved the most money ever in a single year. Last month, Treasurer Garrity eliminated the minimum deposit to open a PA 529 account, making it possible for anyone to start saving with as little as one dollar.
There are two PA 529 plans, the PA 529 Investment Plan (IP) and the PA 529 Guaranteed Savings Plan (GSP). PA 529 IP account earnings are based on financial market performance. PA 529 IP account owners can choose from various investment options including target enrollment date portfolios. These options automatically rebalance asset allocation as a child reaches their anticipated enrollment date. The PA 529 IP was recently named a ‘best-in-class’ plan by Morningstar, earning a Silver Rating for the second consecutive year. The PA 529 GSP is a lower-risk option, and earnings are determined by tuition inflation. With PA 529 GSP accounts families pay future tuition at today’s prices.
PA 529 IP and GSP account tax benefits include:
- State income tax deductions on contributions (up to $15,000 per beneficiary per year; $30,000 for married couples);
- Contributions grow free of federal and Pennsylvania income taxes;
- No income tax is paid on account withdrawals when used for qualified expenses; and
- Gift and inheritance tax benefits
An added program benefit is that PA 529 account assets do not affect Pennsylvania state financial aid eligibility.
PA 529 accounts can be used to pay for qualified higher education expenses, including tuition, fees, equipment, books, room and board, and other qualified expenses. Accounts can be used at most schools nationwide including community colleges, technical schools, apprenticeship programs and four-year colleges and universities.