Iowa State Treasurer Roby Smith is reminding participants in the College Savings Iowa 529 plan that the account also can be used to repay students loans.
“While many know their College Savings Iowa accounts can be used to pay for education expenses beyond tuition, some may not know up to $10,000 in account funds can be used for repayment on any qualified education loan of the beneficiary or sibling of the original beneficiary,” Mr. Smith said in a news release recently.
According to Federal Student Aid, 45 million Americans – or nearly 13% of the U.S. population – have outstanding student loans. As of this past March, there were more than 429,000 borrowers in Iowa with outstanding education loan debt that totaled more than $13 billion.
The treasurer’s office said those between the ages of 25 and 34 represent the largest group of Iowa borrowers.
“The flexibility of a College Savings Iowa account can help scholars beyond their years in education,” Mr. Smith added.
The state’s savings plan allows parents, grandparents, other relatives and friends to invest on behalf of a future scholar.
In addition to college loan repayments, College Savings Iowa funds can be used for qualified expenses ranging from tuition to room and board, books, supplies and more. The funds can be used at trade schools, apprenticeship programs, two- and four-year colleges, graduate schools and other eligible educational institutions in the U.S. and abroad.
In addition, up to $10,000 can be used per year to pay tuition expenses at a K-12 institution.
For more information, visit CollegeSavingsIowa.com or call (888) 672-9116. Or connect with College Savings Iowa on Facebook, Instagram or X. For additional details about the plan, read here.
