May 29 is upon us. May 29 (5/29) has been designated a day to raise public awareness about the benefits of a 529 college savings plan—the tax-advantaged investment plans named for Section 529 of the tax code and designed specifically to save for higher education expenses.
Administrators of 529 plans throughout the U.S. have scheduled special activities for the day. Events and activities in the New England states include open houses, baseball games, contests and visits to local hospitals to encourage families to sign up.
For financial aid purposes, 529 plans, are considered to be assets of the account owner. If the account owner is the parent of a student, on average, about 5.6% of the value of the account is considered in determining the student’s Expected Family Contributions (EFC)—the amount the family of the beneficiary is expected to pay toward the beneficiary’s higher ed.
For further information in New England, visit: Connecticut Higher Education Trust (CHET); Finance Authority of Maine (FAME) NextGen; Massachusetts Educational Financing Authority (MEFA); New Hampshire’s UNIQUE Fidelity Plan; Rhode Island CollegeBoundfund; and Vermont Higher Education Investment Plan (VHEIP).