Missouri sees low enrollment rate in college savings plan

1 year 3 weeks 5 days ago Saturday, September 23 2017 Sep 23, 2017 Saturday, September 23, 2017 3:28:00 PM CDT September 23, 2017 in News
By: Stephanie Sandoval, KOMU 8 Reporter
loading

JEFFERSON CITY - Missouri has one of the lowest enrollment rates when it comes to the 529 College Savings Plan. 

State Treasurer Eric Schmitt wants to increase awareness when it comes to college savings. Since he took office in January, Missouri’s MOST 529 College Savings Plan has seen around 3,500 new accounts.

“We’re going to continue to work hard,” Schmitt said. “Building those relationships and partnerships with school districts, with businesses and with non-profits to get as many people enrolled as possible.”

But, he said the biggest challenge is getting the word out. 

“We have about 2.5 percent enrollment, which is a lot lower than other states, including states our size, like Kansas, Ohio and Indiana — places like that,” Schmitt said. “So, we have some work to do.” 

Missouri’s MOST 529 College Savings Plan allows parents to save for their child’s education while also saving money on taxes. Schmitt said Missouri has one of the more generous deductions in the country. 

“Meaning if you put $1,000 away, or $2,000 away over the course of a year or whatever that amount is — up to $16,000 per married couple or $8,000 individually,” Schmitt said. “You can deduct those contributions from your gross income in your state taxes.”

“The second benefit of that is that as that money grows over time, five, 10, 15 years, any gain on those investments over time isn't taxed either,” Schmitt said. 

According to the top 10 counties for higher education savings list on the State Treasurer’s website, Cole County is no. five on the list while Boone County is no. six.

Missouri’s Commissioner of Higher Education, Zora Mulligan, has been a member of the Missouri Higher Education's Savings Board, which governs the MOST 529 College Savings Plan, for about a year now. Mulligan said this is the best way to save for college from a financial perspective. 

“There are also a variety of investment options that allow people to really tailor their investment plan to their need and their level of comfort with risk,” Mulligan said.  

Schmitt said, “If a college savings account is open for a child, they're six times more likely to go to college.”

Schmitt said the program is not just for parents. Grandparents and friends can participate as well. 

Schmitt said he has teamed up with seven school districts to talk to students, teachers and parents about his initiative. He said it's important to talk with students about college early. 

"And I think that’s part of why you see when an account is open, a child is six times more likely to go to college then when they don't have an account," Schmitt said. "Because there’s a whole kind of system then created — there’s an expectation, there’s encouragement, there’s money. It’s a very important thing for us to be encouraging.”

More News

Grid
List
COLUMBIA - Sen. Claire McCaskill spoke about health care in Columbia on Friday at Laborers Local 955, as part of... More >>
11 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:35:00 PM CDT October 19, 2018 in News
COLUMBIA - After realizing the underrepresentation of Hispanic business owners in mid-Missouri, three Hispanic professionals established a group of 12... More >>
13 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 5:49:00 PM CDT October 19, 2018 in News
COLUMBIA - This is the last week of the regular season and it's a cold one. Our game of... More >>
14 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 5:20:00 PM CDT October 19, 2018 in Friday Night Fever
COLUMBIA - Two Midwest companies issued separate food recalls this week for bacterial contamination concerns. Hy-Vee said its supplier,... More >>
14 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 4:53:00 PM CDT October 19, 2018 in News
CAMDEN (AP) — Toxicology tests show that a boater was drunk when he slammed into a bluff at Missouri's Lake... More >>
15 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 3:41:35 PM CDT October 19, 2018 in News
COLUMBIA - The Legion of Black Collegians and the FourFront Marginalized Student Council held a solidarity walk Friday to show... More >>
15 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 3:39:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - The Missouri State Medical Association (MSMA), along with multiple medical associations, reaffirmed their opposition to the three... More >>
16 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 2:50:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - For the fourth consecutive year, Project Homeless Connect provided services Friday for people who are experiencing homelessness... More >>
16 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 2:39:00 PM CDT October 19, 2018 in News
DES MOINES, Iowa (AP) — The Mega Millions jackpot has soared to an estimated $1 billion, as the second-largest lottery... More >>
19 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 12:10:00 PM CDT October 19, 2018 in News
JEFFERSON CITY - Police want the public's help finding a man who allegedly ran from a traffic stop after hurting... More >>
19 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 11:42:00 AM CDT October 19, 2018 in News
COLUMBIA - Two MU residence halls and an atrium were officially dedicated on Friday honoring three former MU students. Lucile... More >>
21 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 10:09:00 AM CDT October 19, 2018 in News
WASHINGTON (AP) — Just 1 in 4 people thinks Brett Kavanaugh was completely honest when as a Supreme Court nominee... More >>
21 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 9:58:13 AM CDT October 19, 2018 in News
(CNN) -- The US moved closer to acknowledging the role of Saudi Arabia in journalist Jamal Khashoggi's apparent death as... More >>
21 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 9:36:16 AM CDT October 19, 2018 in News
RANDOLPH COUNTY - MoDOT announced they will close Randolph County Route CC from Route FF to Route K on Monday,... More >>
22 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 8:30:00 AM CDT October 19, 2018 in News
FLORISSANT (AP) — Authorities have arrested a suburban St. Louis student after finding a loaded gun and a razor inside... More >>
23 hours ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:46:15 AM CDT October 19, 2018 in News
ST. CHARLES, Mo. (AP) — A Missouri man has been sentenced to life in prison in the 1984 beating death... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 7:10:00 AM CDT October 19, 2018 in News
KANSAS CITY, Mo. (AP) — A Kansas City doctor has been sentenced to a year in federal prison for his... More >>
1 day ago Friday, October 19 2018 Oct 19, 2018 Friday, October 19, 2018 6:51:00 AM CDT October 19, 2018 in News
ST. LOUIS - Democratic Sen. Claire McCaskill and Republican opponent Josh Hawley were sometimes heated and often derisive as they... More >>
1 day ago Thursday, October 18 2018 Oct 18, 2018 Thursday, October 18, 2018 9:02:00 PM CDT October 18, 2018 in News
Columbia, MO
Broken Clouds 44°
8am 46°
9am 48°
10am 53°
11am 56°