Give the Gift of Education and Opportunity this Season

WINOOSKI, VT, December 19, 2023 – Holiday gifting can be simple. With Vermont’s VT529 education savings plan, anyone can give a one-size-fits-all gift that lasts into the future. Vermont Student Assistance Corporation (VSAC), the state administrator of Vermont’s official 529 savings program, encourages families to look ahead and plan for loved ones’ success with a gift of education savings this year. 

Named after Section 529 of the Internal Revenue Code, 529 plans help families set aside funds for college or training costs. Contributions don’t have to be a big investment - VT529 accounts can be opened with just $25 - and the savings grow tax-free. Contributions can be transferred between beneficiaries, and even to children or adults of future generations.

People of all ages – infant or teen, high school or adult learner - can benefit from savings to fund future opportunities in career education or job training. Education savings funds can be used to pay for tuition, housing and meals (both on and off campus), books, student loans, and many other college or training costs, including apprenticeships and credential programs. New this year, it’s even easier to pay education expenses by using the VT529 Mastercard debit card to draw down funds on existing accounts.

Contributions to VT529 accounts also offer tax advantages to Vermonters giving the gift: Because VSAC’s VT529 plan is Vermont’s official college savings plan, deposits made into a VT529 account by Sunday, Dec. 31 qualify for a 10 percent Vermont state income tax credit on contributions of up to $2,500 per beneficiary per year ($5,000 if filing jointly, with a maximum of $1000).

“College savings accounts are a powerful tool,” said Scott Giles, VSAC president and CEO. “Studies show that students with even small amounts of savings are three times more likely to pursue education after high school and four times more likely to complete that training, earning the degree or credentials they need for the jobs of the future.”

The gift of education savings is also a gift of peace of mind to parents and guardians who feel responsible for helping their loved ones achieve their dreams. A survey recently performed by the College Savings Foundation found that nearly half (45%) of the 1,000 parents responding said they would like to ask for contributions to 529 education plans as gifts for their children for holidays or other major events. 

Anyone may open a new VT529 account for any beneficiary, fund an existing account, or purchase a Gift of College VT529 gift card. This gift card is available at Vermont Cumberland Farms and Kinney Drugs and is an easy way to use a gift card to contribute to a VT529 account during the busy holiday season. 

“Education is one of the most important investments one can make on behalf of a student, and Vermont’s VT529 savings plan is a great place to start,” noted Giles. “When families save for college or job training, they gain an edge on the future, which can be one of the greatest gifts of all.”

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Vermont Student Assistance Corporation is a public, nonprofit agency established by the Vermont Legislature in 1965 to help Vermonters achieve their education and training goals after high school. VSAC serves students and their families in grades 7-12, as well as adults returning to school, by providing education and career planning services, need-based grants, scholarships, and education loans. VSAC awards millions of dollars in grants and scholarships for Vermont students and administers Vermont’s VT529 savings plan. Find us at www.vsac.org or check out Facebook, Instagram, LinkedIn, and Twitter.