10 Things Every Rhode Island Family Should Know About College Savings

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There are 10 things about college and saving for college that every Rhode Island family needs to know. This infographic design is a great visual explainer of how college savings works (it’s easier than you think), and what the state of Rhode Island is doing to help families.

You can click or tap on the visual below to enlarge it, and keep reading below this infographic design too where you’ll fund a written overview of how saving for college works in Rhode Island.

10 Things for Rhode Island Families to Know About Saving for College

1. By the end of the decade, 70% of jobs will require college degrees or some form of post-secondary education.

2. $33,000 is the average student debt per borrower for the graduating college class of 2020.

3. $338K is the projected cost of a 4-year college degree at an in-state school in 2035.

4. A 529 plan offers your family a tax-advantaged way to save for college and other higher education expenses. Funds in a 529 plan can go to technical college or vocational school, college or university, trade school, study abroad programs, K-12 private school tuition, books, computers and school supplies, room and board, and even student loan debt.

5. CollegeBound Saver Program  is Rhode Island’s direct-sold college savings plan. Any consumer can directly sign up or enroll in this plan online.

6. CollegeBound 529 is Rhode Island’s advisor-sold 529 college savings plan.

7. Out-of-state enrollments are allowed for either of Rhode Island’s 529 plans.

8. $500,000 is the plan’s maximum contribution limit. Contributions may be made until the balance of all Rhode Island 529 plan(s) for the same one individual reaches $500K. Funds already invested can remain in the plan(s) and continue to gain interest, but no additional funds may be contributed.

9. Rhode Island tax benefit: $1,000/yr for joint filers or $500/yr for single filers.

10. $18,648 is how much more you’ll save (or earn) for college by putting your savings for college in a 529 plan instead of a regular savings account at the bank.

You can also find more information in this article on Rhode Island 529 plan basics, or checking out the state treasury department’s website at http://treasury.ri.gov/programs/collegebound-saver-529-plan/.

Rhode Island 529 plans are eligible to be linked to the free Upromise Rewards program. Upromise has helped families save more than $1 Billion for their children’s college education. Join free and earn free cash rewards your child’s college. Additionally, every month there is a drawing where 5 Upromise members win a free $529 scholarship.

*This assumes a 6% hypothetical rate of return for 529 plans compounded annually and assumes a 0.05% APY or annual interest rate for a savings account. The information in the infographic chart is for illustrative purposes. Funds invested in a 529 plan may see higher or lower rates of return than illustrated in this example.



Check out these College Savings: 529 Plan Basics by State

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