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VSAC To Open College Savings Accounts For Babies Born On ‘529 Day’

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VSAC To Open College Savings Accounts For Babies Born On ‘529 Day’

vt-world by vt-world
May 10, 2019
in Local News
0

Lucky babies born May 29 in Vermont will receive $100 deposit into a Vermont 529 college savings account opened by the Vermont Student Assistance Corp.

Plus, one lucky Vermonter – baby or not – will be chosen to receive $529 in a college savings account in an online month-long drawing. To enter, visit vsac.org or vheip.org between May 1 and May 31.

The Vermont Association of Hospitals and Health Systems is joining VSAC, which administers Vermont’s 529 college savings plan, to help educate Vermont families about saving for college for their children.

“Vermont hospitals believe that a healthy, vibrant Vermont is possible, and while excellent health care is an essential component, addressing the social determents of health is equally important,” said VAHHS President and CEO Jeffrey Tieman. “Specifically, education has a profound impact on population health, and that’s why VAHHS partners with VSAC each year on 529. We know that investments in education will provide health benefits for our children, families and communities.”

A 529 plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996.

Vermont’s 529 college savings plan, called the Vermont Higher Education Investment Plan (or VHEIP), helps families put their children’s college education within reach. With VHEIP, you can open an account with just $25 or give a gift of any amount. And as you contribute to a Vermont 529 account, you can benefit with tax advantages and a Vermont state income tax credit on savings for education or training after high school.

Research shows that children with college savings accounts are three times more likely to attend college and four times more likely to graduate than children without accounts. Every dollar saved now is money you won’t need to borrow later on, helping to reduce future education debt.

“College savings accounts are clearly a powerful tool,” said Scott Giles, president and CEO of VSAC. “We want to encourage parents to open a VHEIP account and get started early to save for college and other career training. The ideal time to begin saving is between birth and age 5 in order to allow your investment to build over time.”

But it’s never too late to start saving – and Vermont’s month-long 529 college savings celebration is a great time to begin! Whether you’re young or old, be sure to join VSAC to celebrate 529 day and get a chance to win $529 in a VHEIP college savings account.

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