Reduce student debt by planning ahead with The

SANTA FE, NM, July 26, 2022 (GLOBE NEWSWIRE) — As student debt continues to mount and tuition fees continue to rise, saving for a loved one’s education is more important than ever. According to the Education Data Initiative, 43.4 million people have student loan debt, and the average borrower in the United States has approximately $37,014 in student loan debt. This leads to financial planning and avoiding debt accumulation for future students. To ease the burden of student debt, The Education Plan® – a 529 college savings plan – offers families a tax-advantaged way to save for future education expenses.

“A 529 college savings plan can be a great way to keep up with rising tuition and inflation,” said Natalie Cordova, executive director of New Mexico’s Education Trust Board, the state agency that manages the 529 savings plan, The Education Plan ® managed. “Putting into a 529 account now may reduce student loan needs in the future when the cost of higher education is expected to be even higher than it is now.”

High student loan payments can reduce the purchasing power of graduate salaries and limit future financial endeavors, including saving for retirement. However, the Education Plan® provides flexible ways for parents, grandparents, and other friends and family members to contribute and help cover college costs, reducing the need to rely solely on high-interest student loans that can significantly impact the standard of living at career entry.

The education plan’s 529 Savings Plan allows for deposits with no minimum required and the account holder can make deposits whenever they want. Even small contributions add up, and the earlier an account is opened in a child’s life, the more the account can grow through compounding. Opening a savings account can make a positive difference at any time. According to the Center for Social…