How Michigan families can start saving for college with $25
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LANSING, Mich. (News 10) – As the cost of higher education continues to climb, a Michigan state program allows families to begin saving for college with as little as $25.
The Michigan Education Trust offers a 529 prepaid savings program designed to make college planning more accessible for families at any income level.
The program lets families buy college credits at today’s prices, locking in tuition costs before they go up.
The account offers tax deductions on contributions and tax-free earnings on withdrawals. Money saved in the account can be used for in-state or out-of-state programs, as well as trade schools.
Megan Patino with Michigan Education Trust said starting early gives families a financial advantage.
“The gift of time that you have when you have a younger child is you have time for that money to grow,” she said. “To go into the world, graduate from college without that debt, or with a lesser amount of debt is a huge gift to a child.”
Local residents weigh in
Tom Hands, a Lansing resident, said he had his daughter pay her own way through college — and she graduated debt-free. His advice: plan ahead.
“Look at what the future is going to be like and plan, plan out what you want to do for college,” Hands said.
Jordan Bowman of Wagner Financial said he uses the 529 plan for his own children and values the flexibility it provides.
“You combine that with community college, which most people can get for free nowadays, on top of some scholarships and other aid,” Bowman said. “Even with $10,000-$20,000, you can have a kid that’s getting out of school with very limited debt.”
Bowman said no two families are the same and encouraged everyone to explore all their options, including custodial brokerage accounts.
Michigan’s 529 plan also allows family members and friends to contribute money to the fund.
For more details visit misaves.com.
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