College Planning

College planning

As the cost of Higher Education increases, college savings become increasingly important.


Why College Planning?

Going to college is more necessary than ever and having a degree gives young job seekers a competitive edge. Entering into adulthood without college loan debt puts them at an even greater advantage as they begin to save for a home, starting a family of their own, and retirement. Consider these facts:


  • Two-thirds of college seniors in 2010 graduated with student-loan debt. The average amount was $25,250. (From The Project on Student Debt, Student Debt and the Class of 2010 [2011])
  • 34% of families paying for college took out student loans in 2010, up from 25% in 2009. [From Sallie Mae, How America Pays for College (2011)] 


It’s hard to question the value of a college education, but costs are enough to break the bank for many families. With higher education costs rising faster than inflation, parents of today’s kindergartners will face college bills of more than $200,000. The right college savings plan can help ensure your loved can afford higher education and prevent dangerous loan debt.


Why a planner?

Because every family’s financial needs are different, we can help you find the perfect college savings plan so you can be at ease with the knowledge that your loved one has the funds to complete their education. Benefits of a college saving plan can include:

1Tax advantages

  • No federal income tax on earnings if withdrawals are used for qualified expenses.
  • Some states offer income tax benefits.
  • Earnings grow tax free.



  • No income restrictions.
  • Pay qualifies expenses at any eligible educational institution nationwide.
  • Can be used for Grade school or Higher Education
  • No limit on asset changes
  • No age restrictions (donor or beneficiary)
  • Unlimited beneficiaries — open as many accounts as you’d like



  • Account owners, not beneficiaries, control the account.
  • No penalty to change the beneficiary when both beneficiaries are in the same family.
  • Rollovers allowed with change of beneficiary.


Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest. 529 Plans are  subject to enrollment, maintenance, administrative and management fees and expenses. Non qualified withdrawals are subject to federal and state income tax and a 10% penalty. College savings plans offered by each state differ significantly in features and benefits. The optimal plan for each investor depends on his or her individual objectives and circumstances. In comparing plans, each investor should consider each plan's investment options, fees and state tax implications. The availability of such tax or other benefits may be conditioned on meeting certain requirements.

school graduationGraduation saving plan

If you have any questions or would like to open a college savings plan for a young person in your life, feel free to contact the financial professionals at Manna Capital Management by calling 703-533-0030