Upromise - learn about Upromise and saving for college

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Using your earnings
The money you earn is ready when you are — now or years from now.

The great thing about your Upromise earnings is that it's real money that never expires. And there's no limit to how much you can earn or save. Once you've accumulated at least $25 in earnings in your Upromise account, you can use this money in a variety of ways:

  1. Invest in a 529 plan

    grow your earnings in a tax-free 529 account.

    This is a smart option if you are saving for the future because your money will grow—tax-free. See how your earnings can grow in a tax-free account as compared to a taxable savings account. With as little as $50, you can open a 529 Plan with Upromise Investments, Inc., a member of FINRA/SIP, with seasoned financial investment advisors ready to help you.

    For instance, if you start with a $250 initial contribution at an annual rate of return of 8%, and continue to make a $600 per year investment ($50 per month) and no withdrawals, in 18 years you could have:

    Investing in a 529 tax deffered plan[1] can yeild 29% more savings than a taxable savings account.

    That's an extra $5,678 or 29% more for investing in a 529 plan 1

  2. pay off student loans

    pay down existing Sallie Mae student loans.

    This is a great way to reduce your student loans. And it's easy with Upromise Loan LinkSM, a free service that lets you automatically transfer $25 or more each quarter from your Upromise account directly to your Sallie Mae student loans.

    Look at the difference it can make. If you had $19,000 in Stafford loans, here's how much you could reduce your loan balance over ten years2:

    $50 in annual Upromise earnings could reduce the loan by $1,006; $100 in annual Upromise earnings could yield a $1,976 loan reduction
  3. Request a check for college expenses

    collect a check for college expenses.

    This is an option to consider if you don't wish to invest your funds for the future or pay down student debt.

Did you know?

Withdrawals from your Upromise account are tax-free.

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[1] This example assumes the taxpayer is in the 30% federal income tax bracket for all options at the time of contribution and distribution. This hypothetical is for illustrative purposes only. It does not reflect an actual investment in any particular 529 plan or any taxes payable upon withdrawal.

[2] $50 and $100 per year savings amounts are not typical. Individual savings will vary depending on spending habits and level of engagement in Upromise. Active members earn contributions by using the Upromise credit card and doing things such as making eligible online and offline purchases with our partners and inviting friends and family to pass on their contributions. Savings examples assume all of the following: 4 unsubsidized Stafford loans borrowed in years 1 - 4 of school totaling $19,000 ($3,500 in year 1; $4,500 in year 2; $5,500 in year 3; $5,500 in year 4) with 2 equal disbursements per year, the borrower is saving in his/her Upromise account amounts listed above on an annual basis beginning with the first Stafford Loan disbursement, a fixed interest rate of 6.8%, a 45 month in-school period, a 6 month grace period, a 10 year repayment period and a Standard Repayment Account. Postponement of payments, late fees, prepayments, Upromise program changes, change in repayment schedule including extension of repayment terms or change in school term may impact actual amounts displayed. Terms and conditions apply. Visit www.SallieMae.com/upromise for details.