Higher Ed Utah

Families are Preparing for the Cost of Higher Education

(Salt Lake City) The Utah Educational Savings Plan (UESP) has reached more than $3 billion in assets, showing a growing commitment by families to financially prepare for the future cost of a higher education for their child or grandchild. From January through December 2009, the total number of UESP accounts increased 12.53%.

“Families are preparing for the growing financial challenge of funding a college education. They see it as an important investment in their child’s future,” said Lynne Ward, Director of the Utah Educational Savings Plan. “UESP offers college savers a simple, sound and tax-advantaged way to save for higher education. UESP makes it easy to save for the cost of a higher education.”

“The continuing national recognition of UESP as a premier college-savings option affirms the value of such a great service available to Utah families,” said William Sederburg, Commissioner of the Utah System of Higher Education. “This milestone highlights the Plan’s responsiveness to customers, commitment to low fees, and tax advantages available to Utah taxpayers.”

The Utah Educational Savings Plan is a highly-ranked, non-profit 529 college savings plan created by the State of Utah in 1996. In April 2009, Morningstar, an investment research firm, stated that “Utah’s 529 plan has long been a favorite of ours and remains a strong choice for its low costs, flexibility and tried-and-true Vanguard index funds. The plan’s fees are a rock-bottom 0.22% to 0.35%, making it one of the cheapest plans in the country.”

“We congratulate UESP account owners who made saving for education a priority even during 2009’s difficult economic times,” said Ward. “With the start of a new year, we encourage all families to look ahead, set new savings goals, and save what they can, when they can.”

Online enrollment and contributions make it easy to participate in the Utah Educational Savings Plan. Go to uesp.org to obtain and read a copy of the Program Description, to open an account and to contribute online. Contributions can also be made by check, withdrawn automatically from your checking or savings account, or through payroll deduction if allowed by the employer.

The Utah state tax credit is just one of the benefits Utah UESP account owners receive. Earnings on the account grow tax deferred and are tax free when used for qualified higher education expenses like tuition, fees, certain room and board costs and required books and supplies at any eligible educational institution that accepts federal financial aid, not just institutions in Utah.

To fulfill your New Year’s resolution of preparing for future qualified higher education expenses and to learn more about the Utah Educational Savings Plan, call 800.418.2551 or visit uesp.org.