PROVIDENCE, R.I. (WPRI) — More and more students are struggling with the cost of a college education, and becoming overwhelmed with the debt.
Collegebound is a program aimed at helping families save for college in advance, so when the time comes, they can afford to send their kids to school and have them graduate with a little less debt.
The 529 College Savings Plan has been around since the 1990’s, but it was just overhauled.
If you or your child has an account, a few things might change.
General Treasurer Seth Magaziner, says if you have an account already, hold tight. “You have automatically been placed into an investment option that is the most similar to the one you were already in.”
According to Magaziner, fees for current account holders will actually drop.
Account holders will be able to make changes to their account if they choose to though.
“We have added some new investment options, including some very low cost index fund type options that we think are going to be very popular,” said Magaziner. “A good low cost way to invest and to save,” he added.
There is no account minimum to open a CollegeBound account, and for an individual, the first $500 is considered tax deductible.
Right now, about 20,000 Rhode Islanders have CollegeBound accounts.
Another quarter of a million people from out of state have accounts through Rhode Island’s plan. For out-of-state account holders, Rhode Island charges a small fee. That money goes toward Rhode Island Promise Scholarships.