(610) 929-2151

Schwank Reminds Families to Enroll in PA 529 Under Current Credit Prices

August 24, 2012

READING, Aug. 24, 2012—State Sen. Judy Schwank is reminding parents, grandparents, and students that there is still time to save for college at last year’s credit prices in the Pennsylvania 529 Guaranteed Savings Plan (GSP). After Aug. 31, GSP credit prices will rise due to the increases in tuition rates for the coming academic years.

Sen. Schwank explained that the PA 529 Guaranteed Savings Plan allows families to buy college credits at today’s prices for use when a student is ready to go to college. (Pennsylvania 529 also offers an Investment Plan, which allows families to save for college by choosing a variety of market-based investment options).

“Getting a good education is the key to a bright and successful future,” said Senator Schwank. “With the average cost of a four-year university increasing at the rate of 15 percent every two years and cumulative student loan debt nationwide over $1 trillion, it makes sense for families to save early to help their children afford the cost of college.

“For the past twenty years, the Pennsylvania 529 college savings program has helped tens of thousands of families meet the cost of college tuition,” noted Senator Schwank. “I used the PA 529 Program to help fund my daughter’s tuition at Penn State.”

“Families have until next Friday to purchase the GSP credits at last year’s rates and I encourage them to take advantage of this opportunity,” added Senator Schwank. “For families not yet enrolled in the PA 529 Program, now is a good time to begin a college savings program.”

According to Senator Schwank, saving for college through the PA 529 college savings plan offers a variety of tax benefits, including a state tax deduction of up to $13,000 per beneficiary.

Additionally information on the Pennsylvania 529 college savings program is available online at www.pa529.com or by contacting Senator Schwank’s district office at 610-929-2151.

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Schwank: Enroll in PA 529 College Savings Plan Now for Tax Savings

December 23, 2011

Free enrollment is now available for a limited time.

READING, Dec. 23, 2011—State Sen. Judy Schwank today said families who open or contribute to a Pennsylvania 529 College Savings account before Dec. 31 will be able to enroll for free and reduce their 2011 Pennsylvania state taxable income.

“It is never too early or too late to start saving for college, especially as tuition costs continue to rise over the years,” Schwank said.  “Families who contribute before Dec. 31 will be able to reap valuable tax benefits, as well as contribute to their children’s higher education.”

Taxpayers can deduct up to $13,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2011. Married couples filing jointly can deduct up to $26,000 per beneficiary if each spouse has taxable income of at least the amount deducted.  Additionally, family and friends can contribute up to $65,000 in a single year ($130,000 for a married couple filing jointly) for each beneficiary without incurring federal gift tax consequences (assumes no other gifts in the next four years).

Plus, earnings in a 529 plan are not subject to yearly taxes as they grow, and when used for qualified higher education expenses, earnings are tax-exempt when withdrawn.

PA 529 College Savings Program is offering free enrollment – a $50 savings – for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened before Dec. 31 at www.PA529.com.  Use code “StartToday” when prompted.  There is no enrollment fee for the PA 529 Investment Plan (IP).

“During this holiday season, there is no better gift to give a child than a gift of an education, especially during this free enrollment period,” Schwank said. “Make a resolution for 2012 to start saving for college right now.”

To open or contribute to an account, visit www.PA529.com or call 1-800-440-4000.

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