PLAN FOR THE COSTS OF HIGHER EDUCATION
Is there a college student in your future? How much will college cost? How much do you need?
Take Advantage of Time
Opening a college savings account as soon as possible and contributing regularly provides the opportunity for compounding growth. The sooner you start, the more potential you have to grow your savings, and the less you may have to borrow when it comes time to pay for college.
Consider a CollegeAmerica® 529 Savings Plan
CollegeAmerica offers the tax advantages, flexibility and control of investing in a 529 plan, plus built-in simplicity and quality investment options from the American Funds.
• Launched in 2002
• Chosen by more than 110,000 advisors and more than 1 million families nationwide
• The country’s largest plan*, with assets topping $49 billion†
Three Different Investment Approaches
American Funds College Target Date Series®: Designed to pursue the specific needs of college savings investors, these funds automatically grow more preservation-oriented as college approaches.
American Funds Portfolio SeriesSM: The six Portfolio Series “funds of funds” available in CollegeAmerica are managed with specific objectives in mind: Appreciation, Balance or Preservation. Select the one that best fits the beneficiary’s time frame and your risk tolerance.
The American Funds: The 27 individual American Funds available in CollegeAmerica are good options for building customized portfolios with the help of your advisor.
Explore Other Ways to Meet College Costs
There are other options to consider if you have a savings shortfall and are unable to increase the contribution amount to your college savings account.
Invest monetary gifts from relatives and loved ones. Directing money from holiday and birthday gifts to a college savings account can play a meaningful role in supplementing your contributions.
Explore grants and scholarships. These awards are offered by federal, state and local governments, private and non-profit organizations and most colleges. The best part — grants and scholarships, in general, do not need to be paid back.
Research student loans. Student loans are offered by federal and most state governments and from private institutions such as banks. Of course, student loans must be paid back along with any interest incurred.
Take advantage of your local community college. Beginning at a local community college, then transferring to the student’s college of choice can reduce overall costs and provide access to an education that might otherwise be out of reach.
Contemplate other colleges. Run scenarios in the College Savings Calculator using different colleges to see if you can find other schools that are both a good fit for the student and your family’s finances.
* Largest by assets, according to the Q4 2014 529 College Savings Quarterly Data Update from Strategic Insight.
† Source: American Funds. As of March 31, 2015, CollegeAmerica AUM is $49.2B.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.