Families are Encouraged to Begin Saving for Education Early
Good news about PA 529 Guaranteed Savings Plan
Harrisburg, PA - The Pennsylvania Higher Education Assistance Agency (PHEAA) and the Pennsylvania Treasury Department together are encouraging families to consider saving with the PA 529 Guaranteed Savings Plan (GSP). This is a smart way to save early for future education expenses and receive tax advantages, including a PA state income tax deductions for contributions. Your savings can be used toward postsecondary tuition, room and board, books, and more at many colleges, universities, career, vocational, and technical schools, and certain apprenticeship programs.
For the second consecutive year, all PA 529 GSP asset-based fees will be waived until next June!* Now is also the perfect time to make an extra contribution to your PA 529 GSP account because many PA 529 GSP credit rates will increase after August 31, 2023.
“It is PHEAA’s mission to create affordable access to higher education. To that end, we want to share any available savings opportunities with families. The PA 529 GSP is a wonderful program to help you start saving for higher education early.”
PHEAA Board Chairman, Senator Wayne D. Fontana
“No matter what path a child takes in the future, the PA 529 GSP is a great tool to help pay for the education and training they will need. Waiving these fees again for this fiscal year will save account owners $5.5 million, making our PA 529 GSP even more affordable for Pennsylvania’s hardworking families. Making a contribution before August 31 will lock in the lowest possible tuition rates, helping families save even more.”
Pennsylvania State Treasurer, Stacy Garrity
Assets held in a PA 529 plan are not counted by PHEAA when determining state financial aid for college (assets in any other state 529 plan are counted) and can help families reduce borrowing. If a child doesn’t pursue postsecondary education, the account beneficiary can be changed.
Families can also boost education savings for PA children through Keystone Scholars, a program which provides a $100 at-birth investment for a child’s future postsecondary education expenses. Starting early gives families the most time to save. With Keystone Scholars and a PA 529 account, you can view your education savings in one place.
Learn more about these programs at pa529.com.
*All PA 529 GSP account owners' asset-based fees will be waived for the fiscal year, beginning July 1, 2023 and ending on June 30, 2024. After June 30, 2024, PA 529 GSP accounts are subject to current plan fees as detailed in the PA 529 GSP disclosure statement.
