{"id":461,"date":"2021-06-29T03:07:40","date_gmt":"2021-06-29T03:07:40","guid":{"rendered":"https:\/\/www.upromise.com\/articles\/?p=461"},"modified":"2022-05-20T15:58:32","modified_gmt":"2022-05-20T15:58:32","slug":"10-things-every-michigan-family-should-know-about-college-savings","status":"publish","type":"post","link":"https:\/\/www.upromise.com\/articles\/10-things-every-michigan-family-should-know-about-college-savings\/","title":{"rendered":"10 Things Every Michigan Family Should Know About College Savings"},"content":{"rendered":"\n

There are 10 things about college and saving for college that every Michigan family needs to know. This infographic design is a great visual explainer of how college savings works (it\u2019s easier than you think), and what the state of Michigan is doing to help families.<\/p>\n\n\n\n

You can click or tap on the visual below to enlarge it, and keep reading below this infographic design too where you\u2019ll fund a written overview of how saving for college works in Michigan.<\/p>\n\n\n\n

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10 Things for Michigan Families to Know About Saving for College<\/h2>\n\n\n\n

1. By the end of the decade, 70% of jobs will require college<\/strong> degrees or some form of post-secondary education.<\/p>\n\n\n\n

2. $33,000 is the average student debt<\/strong> per borrower for the graduating class of 2020.<\/p>\n\n\n\n

3. $319K is the projected cost of a 4-year college degree<\/strong> at an in-state school in 2035.<\/p>\n\n\n\n

4. A 529 plan offers your family a tax-advantaged way to save for college<\/strong> 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.<\/p>\n\n\n\n

5. Michigan Education Savings Program <\/strong>or MESP is Michigan\u2019s direct-sold college savings plan. Any consumer can directly sign up or enroll in this plan online. There are no residency requirements. <\/p>\n\n\n\n

6. Michigan Education Trust is a Prepaid Tuition Program<\/strong> is available only to Michigan families. <\/p>\n\n\n\n

7. MI 529 Advisor Plan <\/strong>is Michigan’s advisor-sold 529 plan. MI 529 Advisor Plan is open to all U.S. residents, however, consumers can only sign up through a qualified financial advisor. <\/p>\n\n\n\n

8. $500,000 is the plan\u2019s maximum contribution limit<\/strong>. Contributions may be made until the balance of all Michigan 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.<\/p>\n\n\n\n

9. Michigan offers tax filers generous state tax benefits<\/strong>. Up to $10,000\/yr may be claimed as a tax deduction for join filers. Single filers may claim up to $5,000\/yr. <\/p>\n\n\n\n

10. $18,648 is how much more you\u2019ll save (or earn) for college<\/strong> by putting your savings for college into a 529 plan instead of a regular savings account at the bank.<\/p>\n\n\n\n

You can also find more information in this article on Michigan 529 plan basics<\/a>, or visiting MIsaves.com<\/a>. <\/p>\n\n\n\n

Michigan 529 plan accounts are eligible to be linked to the free Upromise Rewards program. Across the country, Upromise has helped families save over $1 Billion for college. Join free<\/a> and earn cash rebates and other free cash rewards to save for college and your child\u2019s 529 plan. Additionally, every month 5 Upromise members win a $529 scholarship.<\/p>\n\n\n\n

*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.<\/em><\/p>\n\n\n\n

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