NEWS AND EVENTS
Schedule of Events - 2010
| Date | Event | Location |
| TBD | Mush for Kids | Fairbanks, AK |
| August 6th - 14th | Tanana Valley State Fair | Fairbanks, AK |
| August 26th - September 6th | Alaska State Fair | Palmer, AK |
For more information, please call (907) 474-5671 or email collegesavings@alaska.edu.
COLLEGE SAVINGS MONTH PROMOTION UPDATE.
Information for Those Who May Be Eligible for a $50 Contribution.
September was College Savings Month and the UA College Savings Plan offered to make a $50 contribution into certain new Accounts opened and funded during the promotion period.
An Account Holder was entitled to receive one $50 contribution per new Account for each unique, new Beneficiary, regardless of the number of accounts (or Investments Options) opened for that Beneficiary during the month of September. An Account Holder could open Accounts for as many different Beneficiaries as he or she wished and will receive one $50 contribution for each Beneficiary. Current Account Holders opening additional Accounts for their existing Beneficiaries were not eligible. Any Account established through a PFD application was also excluded from this promotion.
If you opened and funded a new Account in September, and meet the criteria above, you should be receiving a $50 contribution into your Account by the end of October.
If you did not open a new Account in September, consider opening one today. Whether you're a parent, grandparent, or friend, opening a new Account for your child or loved one is a smart, simple way to put aside money for future college expenses. Savings in the UA College Savings Plan can be used to attend any eligible college, in or out of Alaska. There are potential tax benefits - and there are no sales charges or commissions. Therefore, more of your money can be put to work to help you reach your college savings goals.
KIPLINGER'S RECOGNIZES ALASKA'S T. ROWE PRICE COLLEGE SAVINGS PLAN AS ONE OF THE TOP FIVE COLLEGE SAVINGS PLANS.
Kiplinger.com recently recognized five national 529 plans based on a number of different criteria. One of those plans was The T. Rowe Price College Savings Plan, brought to you by The Education Trust of Alaska, which was named as one of the country's top 529 plans by Kiplinger's.* It noted that "The prefab portfolios offered by 529 plans are only as good as their underlying mutual funds. That's why we like [Alaska's] T. Rowe Price College Savings Plan. The plan's most expensive option costs just 0.96% annually."
Kiplinger.com also recognized state-specific plans for their particular features and benefits. The article noted: "We like the University of Alaska College Savings Plan if your kid will attend school in state. It is identical to [Alaska's] T. Rowe Price College Savings Plan, except the University of Alaska College Savings Plan offers the ACT portfolio option, which guarantees protection from tuition inflation if the proceeds are used to attend the University of Alaska."
The UA College Savings Plan is a simple, effective way to invest for a child's future. The plan can be used for any eligible private college, public university, graduate school or vocational school in the country. Any account earnings are tax-deferred, and withdrawals are tax-free if they're used to pay qualified educational expenses. Enroll through your annual PFD application or directly online. You can contact the UA College Savings Plan at 907-474-5671 with any questions.
Save in Alaska. Study Anywhere.
*Kiplinger.com, 6/26/09. Based on the plan's underlying mutual fund options and low expenses. All funds are subject to market risk, including possible loss of principal. To read the Kiplinger's article, click here.
NEED MONEY FOR SCHOOL EXPENSES?
The fastest way to request a distribution is by phone. Call 800-478-0003 to make your request. Phone representatives are available Monday-Friday 4a.m.-6p.m. Alaska time and on Saturdays 4:30a.m.-1p.m. Alaska time. Distribution requests must come from the Account Holder.
University of Alaska students can request that their funds be sent electronically to the University. You will need to provide the following information:
- UA College Savings Plan Account number
- UA ID number
- The name of the UA campus the student is attending
- Semester the funds are for
Need to send a check directly to the school? You will need to provide the following information:
- UA College Savings Plan Account number
- Name of the institution
- Student ID number and
- Billing address for the school
We can also mail checks to the account holder or the beneficiary.
ECONOMIC STIMULUS PACKAGE WILL ENHANCE 529 PLANS
LEXINGTON, Ky. (February 13, 2009) — The College Savings Plans Network (CSPN), an affiliate of the National Association of State Treasurers (NAST), announced today that the economic stimulus bill before Congress today contains a significant enhancement to Section 529 college savings plans. CSPN worked closely with leaders in Congress to allow families to use money from 529 college savings plans to purchase computers and related technology. Until enactment of this legislation, these college savings accounts could be used to pay for computers only if they were required by the college or by a specific degree program or course.
"Given the increasing technological needs of today's students, it makes sense for computers to be allowed as a qualified expense under Section 529 plans. The reality is that any student who does not have a computer will find it increasingly difficult to succeed in college and will find their skills compromised as they enter the workforce," said Jackie Williams, executive director of the Ohio Tuition Trust Authority, and Immediate Past Chair and spokesperson for CSPN. "We applaud the President, Senator Max Baucus, Chairman of the Senate Finance Committee, and the Congress for continuing to provide leadership on education issues by working to improve Section 529 plans to help American families save and use these important plans for their children's higher education expenses."
SOURCE: College Savings Plans Network (CSPN)
Founded in 1991, the College Savings Plans Network (CSPN) is an affiliate of the National Association of State Treasurers (NAST). CSPN is a non-profit association representing states who administer Section 529 college savings and prepaid plans. One of the Network's primary purposes is to educate families about the importance of saving for college and the benefits of Section 529 plans. Additionally, CSPN monitors federal activities and promotes legislative and regulatory changes to enhance Section 529 plans.
GIVE THE GIFT OF AN EDUCATION
If you're not sure what family members can give your child for a holiday, birthday, or other special occasion, consider the lifelong gift of an education. Family and friends can now contribute to an existing University of Alaska College Savings Plan by completing and returning the Gift Contribution Slip with a gift contribution of $50 or more. We've also included an Acknowledgment Form that can be used to announce the gift to the recipient.
Having friends and family contribute to your UA College Savings Plan can help you reach your college savings goals quicker and is a gift that can actually grow in value over time.
See page one of the Gift Contribution Slip for instructions on how you can get started and share this gift idea with friends and family.
SAVING FOR COLLEGE? PRACTICAL ADVICE ON HOW TO WEATHER A VOLITALE MARKET
LEXINGTON, Ky. (October 29, 2008)—If you are like most people, the current market conditions can cause concern when you see your long-term investment accounts, including college savings and retirement plans, losing their value. The College Savings Plans Network (CSPN)—the leading voice in the 529 industry—cannot provide specific investment advice, but encourages people to keep the following principles in mind when making decisions about their college savings accounts during tough economic times:
- Stay focused on your long-term objectives. The market will always move in up and down cycles. Don't let emotions affect your financial decisions. It's important to stay focused on long-term investment returns versus reacting to short-terms losses. Look at the performance of your college savings account since inception of the funds or over the past three years, as well as shorter-term performance.
- Diversify your investments. Invest in a mix of stock, bond and cash investment options, or in an age-based option which typically provides this sort of mix. Age-based options manage the risk for you by automatically shifting the asset allocation of your investments to more conservative options as your child nears college age. Ready-made balanced options invest in a pre-determined mix of funds. You can also create your own diversified mix of investments by selecting from individual stock, bond and cash-based options (such as money market, certificate of deposit, or guaranteed principle options) your plan may offer.
- If you must make changes—make them gradually. It can be tempting to react to market volatility by making a spur-of-the moment decision to reallocate your funds (exchanging one investment option for another) especially if you have a child close to college age and you are not in an age-based option or a conservative investment option. If you feel you are overly invested in equities (stocks) and your child is approaching college age, you could consider two options to help you diversify: 1) invest any new funds into more conservative options; 2) reallocate your equity options to more conservative options. You may want to consider moving the funds gradually so as to not lock in, or realize, all of your losses and to be able to take advantage of a market recovery.
- Understand the limitation on reallocations. You are allowed two reallocations between investment options in your 529 plan in the 2009 calendar year. If you have already made two reallocations on your account this year, you cannot make another change until 2010. However, you can redirect new contributions at any time.
- Make regular investments. Making regular contributions in fixed amounts through bank account drafts or payroll deduction can help you reduce market risk. Often referred to as "dollar-cost averaging," this approach lessens the risk of investing a large amount in a single investment at the wrong time. By buying smaller amounts over a longer period of time, more shares are purchased when prices are low, and fewer shares are bought when prices are high. Eventually, the average cost per share will become smaller and smaller.
- Invite family to help. Still feel as though you are losing ground? Ask your family and friends to help build your college savings by contributing to your account as a holiday or birthday gift. Many plans offer gift certificate forms or contribution slips to facilitate making a contribution as a gift.
- Talk to your plan provider. If you have specific questions about your 529 savings or prepaid plan, call your plan provider. They can address your questions or concerns directly over the phone. For contact information, visit CollegeSavings.org and click on the "My State's 529 Plan" button.
SOURCE: College Savings Plans Network (CSPN)
Founded in 1991, the College Savings Plans Network (CSPN) is an affiliate of the National Association of State Treasurers. CSPN is a non-profit association representing states who administer 529 college savings and prepaid plans. One of the Network's primary purposes is to educate families about the importance of saving for college and the benefits of 529 programs. Additionally, CSPN monitors federal activities and promotes legislation that will positively affect Section 529 plans.
