PA Treasurer McCord to Parents: Add College Savings to Back-to-School Shopping List - and Beat Rate Increase

By contributing to a PA 529 Guaranteed Savings Plan before Sept. 1, parents not only beat imminent rate increases; they save an additional $50

HARRISBURG, Pa., Aug. 12 /PRNewswire-USNewswire/ -- Attention back-to-school shoppers!  Pennsylvania Treasurer Rob McCord today announced a "sale" on one of Pennsylvania's two 529 college savings plans.  Families that contribute to a Pennsylvania 529 Guaranteed Savings Plan account before September 1, 2010, will receive the 2009-2010 academic year's lower rates.  After that date, credit prices may rise due to increases in tuition rates.  

"The end of summer means back-to-school shopping for classroom essentials like backpacks and school supplies," Treasurer McCord said.  "It's also a great time to stock up on an educational investment that will serve your child long after the current school year – a Pennsylvania 529 Guaranteed Savings Plan account."

Treasurer McCord reminded parents that the current, lower prices won't last long.  On September 1, Treasury will adjust credit prices to correspond to the tuition increases set by colleges and universities.  

Parents who act now can beat the increase – simply contribute to the PA 529 GSP before September 1.  Contributions sent by mail must be postmarked on or before August 31 and online contributions must be made by 10:00 p.m. EDT on August 31 at www.PA529.com.  In addition to beating the clock on rate increases, families that open a new PA 529 GSP account before September 1 will also receive free enrollment – a $50 savings.  

"I hope parents will take advantage of these discounts," Treasurer McCord said.

Sponsored by the Commonwealth of Pennsylvania, and administered by the McCord Treasury, the PA 529 GSP is designed to help savings grow to meet the future costs of education.  When used for qualified higher education expenses, the PA 529 GSP guarantees that contributions will grow at the rate of tuition inflation (subject to premiums and fees).  Families saving through the PA 529 GSP receive tax-deferred growth on earnings and tax-free withdrawals when funds are used for qualified educational expenses.

Pennsylvania also offers a second 529 plan, the PA 529 Investment Plan, in which returns are based on performance of the financial markets.  The PA 529 Investment Plan features low fees and more than a dozen conservative and aggressive investment options from Vanguard, one of the nation's largest financial services companies.  Families saving in the PA 529 Investment Plan also receive the same great tax advantages as those saving with the GSP.  

Visit www.PA529.com or call 1-800-440-4000 to make a contribution.

Pennsylvania Treasurer Rob McCord is committed to increasing the economic security and prosperity of all Pennsylvanians.  Before winning the statewide elected job of State Treasurer, McCord was a successful business leader.  He is now focused on strengthening the state's economy, managing investments to get strong returns for taxpayers, and helping to create good jobs and retirement security for Pennsylvanians.  To learn more about Treasurer McCord's initiatives, please visit the Pennsylvania Treasury at www.patreasury.org.

Guaranteed Savings Plan

The guarantee of the PA 529 GSP is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency.  Please read the PA 529 GSP Disclosure Statement (available at www.PA529.com or by calling 1-800-440-4000) to learn more about the plan, limitations of the guarantee, risks, fees, and tax implications of the GSP.

Investment Plan

Please read the Investment Plan Disclosure Statement (available at www.PA529.com or by calling 1-800-440-4000) to learn more about investment objectives, risks, charges, expenses, and tax implications of the Investment Plan.

Investment returns are not guaranteed, and you could lose money by investing in the Investment Plan.

SOURCE Pennsylvania Treasury Department