Over the past 40 years, college tuition rates have been consistently increasing at two to three times the rate of inflation each year. During this same period of time, financial aid funding in general shifted away from student grants towards guaranteed student loans. Today, 7 out of 10 college seniors graduate owing $30,100 on average in student loan debt. When Californians are burdened with student loan debt at levels such as these, they are hindered in their ability to purchase homes, cars, and other products that help boost our economy. Yet, it is estimated that only 37% of families saving for college in the United States are using a 529 college savings plan.
ScholarShare, which serves a California’s official state-sponsored 529 college savings plan, provides families with a valuable tool that offers a diverse set of low-cost investment options, tax-deferred growth, and withdrawals free from state and federal taxes when used for qualified higher education expenses, such as tuition and fees, books, certain room and board costs, computer equipment, and other required supplies.
Since its launch in 1999, ScholarShare has grown to more than 282,000 accounts with over $7.03 billion in total plan assets. More importantly, ScholarShare has helped families meet their higher education needs with more than $379 million withdrawn by families in 2016 for qualified higher education expenses.
To open an account or to get more information please click the link below.