HARRISBURG, September 10, 2012 – State Sen. Jay Costa said families can save $50 by enrolling online in the college savings program operated by the state treasurer’s office in September.
“From now through the end of September, the PA 529 GSP plan is offering free enrollment for all new accounts that are opened online this month, saving families the $50 enrollment fee,” Costa said. “Using this program helps families cope with the high cost of a college education.”
The contributions made to PA 529 plans are tax deductible and when they are used for qualified education expenses are state and federal tax exempt.
“The PA 529 plan is a key financial tool that helps families manage college costs. It may also be used grandparents and friends to contribute to a student’s education,” Costa said.
Costa (D-Allegheny), a longtime advocate of funding for higher education during his tenure in the Senate, said that investing in a PA 529 account is smart and forward-thinking. PA 529 contributions grow at the rate of tuition inflation. The lawmaker said that if a family saves enough for a semester at a state system university today, there will be enough to pay for another semester at the school in the future – regardless of tuition increases in the future.
Costa serves as the Senate Democratic Leader and is a member of the Board of Trustees at the University of Pittsburgh and the Community College of Allegheny County. He is a graduate of Indiana University of Pennsylvania and Duquesne University law school in Pittsburgh.