Oregon College Savings Plan sees record contributions

The Oregon College Savings Plan saw record contributions and assets in 2015, bolstering the fact that Oregon families are embracing the concept of saving for college early to eliminate future debt.

The Oregon College Savings Plan, which launched in January 2001, grew to more than $1.2 billion in assets as of December 31, 2015, with more than $171 million in contributions made to accounts last year. The Plan currently has more than 86,000 accounts.

“These numbers are encouraging, as they indicate families are getting the message that saving early and often is the best way to avoid college debt in the future,” explained Michael Parker, executive director of the Oregon College Savings Plan. “According to Debt.org, American students now owe $1.2 trillion in student loans; our mission is to educate families that it’s better to save now than borrow later.”

The Oregon College Savings Plan also offers tax advantages. Although contributions are after-tax, any investment earnings are federal and state income tax free when withdrawals are used for qualified expenses. In addition, Oregon offers a 2015 state income tax deduction on contributions of up to $4,600 for married taxpayers filing jointly and $2,300 for single filers. (Recapture provisions apply. Refer to the Disclosure Booklet and consult your tax advisor.) Oregon taxpayers have until April 18, 2016 to receive the deduction.

The Oregon College Savings Plan is currently hosting a number of free college funding seminars across the state where 529 plan specialists will be on hand to answer questions and discuss federal and state financial aid options and howto apply for scholarship funds. To find a seminar, visit www.OregonCollegeSavings.com/buzz/seminar.shtml