State Treasurer Don Stenberg suggests thinking about giving a different kind of gift to that young one this Christmas.
Stenberg says a contribution to a college savings plan would be a great Christmas gift. Stenberg points out that earnings under the four plans in Nebraska aren’t taxed as long as they’re used for a college education.
“And that’s wide-range,” according to Stenberg. “That can be not just a four-year college. It can be a community college. It can be a technical college. And it can be used in any state across the country. It doesn’t have to be just used here in Nebraska.”
The Nebraska Educational Savings Plan Trust provides four different college savings plans. The four plans are the NEST Direct College Savings Plan, NEST Advisor College Savings Plan, the TD Ameritrade 529 College Savings Plan, and the State Farm College Savings Plan. The Nebraska State Treasurer serves as the Program Trustee. First National Bank of Omaha serves as the Program Manager, and all investments are approved by the Nebraska Investment Council.
Stenberg says the savings plans offer a method to help students who don’t qualify for assistance to pay for school.
“It’s really become difficult for middle-income, Middle Class families to afford college for their kids,” according to Stenberg. “That’s why it’s especially important to start thinking about it early, set up a college savings plan so that when the time comes the money’s there for higher education for your child or grandchild.”
Earnings grow tax-free as long as the money is used for college.
Stenberg points out that if a grandparent donates to a plan, it’s a gift for both the parent and the child.
“It’s a great way for a grandparent to help the parent of the grandchild as well as the grandchild,” Stenberg says. “It’s a gift that basically will last a lifetime by helping provide a college education.”
For more on the plans, click here to visit the State Treasurer College Savings website.