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It’s no coincidence that September is National College Savings Month. Each year a child moves to a new grade reminds us that college will be here before we know it.
Have you started to save for college yet? It’s not too early — or too late — to begin. According to How America Saves for College 2015 by Sallie Mae® and Ipsos, parents saved an average of $10,040 last year — and those who planned saved 46% more for college than non-planners. If you’re wondering how to start, try following the Sallie Mae® 1-2-3 Approach to Saving for College:
- Open a savings account. Set up and designate a savings account as your college fund. Deposit gifts from friends and family, and sign up for free services that let you earn cash back to save for college.
- Make regular contributions. Set a goal and create a routine of adding money. Even a little bit adds up over time, and automatic deposits make saving easy.
- Explore tax-advantaged options. Put your money to work using dedicated college savings programs like Coverdell Education Savings Accounts, prepaid state college savings plans, and 529 college savings plans.
Use Sallie Mae’s College Planning CalculatorSM to help you determine your savings goal. This free tool will take you step-by-step through building a customized plan to save and pay for college.
Celebrate National College Savings Month by starting or adding to a college savings fund for your student. For more free tools and tips on saving and planning for college, go to SallieMae.com/CollegeSavingsMonth.
Encouraging Responsible Borrowing
Sallie Mae has helped more than 30 million Americans pay for college since 1972. We encourage students and families to supplement their savings by exploring grants, scholarships, federal and state student loans, and to consider the anticipated monthly payments on their total student loan debt and their expected future earnings before considering a private education loan.
Before investing in any 529 plan, please consider whether your or the designated beneficiary’s home state offers its taxpayers benefits that are only available through that state’s 529 plan.
© 2015 Sallie Mae Bank. All rights reserved. Sallie Mae, the College Planning Calculator, and the Sallie Mae logo are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America.
