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Many of the benefits of education and a lifelong pursuit of learning are intangible, but an education can also pay big dividends in terms of future earning power. According to The College Board, college graduates earn 80% more on average than high school graduates. Over the course of your child's life, the difference in earning potential between a high school graduate and a college graduate is more than $1 million. Earning potential increases with each degree a student receives, according to the U.S. Census Bureau.
A child's education could be one of the largest investments you'll make in your lifetime. But it may also provide you with the highest return: a child's successful future. The State Farm® College Savings Plan sponsored by the State of Nebraska helps make college investing simple, affordable, and convenient.
Future tuition bills can be overwhelming
According to The College Board®, college education expenses have grown an average of 6% since 1997, easily outstripping inflation, which rose only 2.5% on average during the same period. If costs continue to rise at that pace, today's high school students could expect to pay more than $100,000 to attend a public, in-state university for four years--and double that for a private institution.
With only so much financial aid to go around, most colleges expect parents and students to contribute their share. Typical financial aid packages also rely on loans and payment plans, which can then be supplemented by a range of other funding options such as:
- Hope Scholarship Credit
- Lifetime Learning Credit
- Grants
- Federal loans
- Coverdell ESA
- Private scholarships
- Unsecured private loans
- Home-equity loans and lines of credit
- Work-study programs
- 529 plans
Saving is hard, especially when you have competing expenses such as retirement, and many families believe they can't possibly save enough to pay escalating college costs. That's where The State Farm® College Savings Plan sponsored by the State of Nebraska can help. A qualified tuition plan operated according to section 529 of the Internal Revenue Code, The State Farm College Savings Plan helps make college investing simple, affordable and convenient. It is important to note that there is market risk involved when investing in mutual funds, including possible loss of principal.
Start investing early
If you begin to save money at the birth of your child even a very small sum each month you can accumulate a considerable amount over time.
The State Farm College Savings Plan is available by registered representatives of State Farm VP Management Corp., One State Farm Plaza, Bloomington, IL 61710, 1-800-447-4930. Please read carefully the Enrollment Handbook and Participation Agreement and consider the investment objectives, risks, fees and expenses and other information associated with The State Farm College Savings Plan before investing or sending money. State and local tax laws vary. If you or the designated beneficiary are not Nebraska residents, you should consider before investing whether you or the designated beneficiary's home state offers any state tax or other benefits to its residents for investing in the plan offered by the state.
The State Farm College Savings Plan (the "plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The plan is established in cooperation with State Farm VP Management Corp. ("State Farm"), the State of Nebraska, and OFI Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds Inc, pursuant to which State Farm offers classes of shares in a series of accounts within the Nebraska Educational Savings Plan Trust (the "Trust" and plan issuer) that are distributed by OppenheimerFunds Distributor, Inc. (OFDI and together with OFIPI, “Oppenheimer”). The Trust offers other accounts that are not affiliated with the plan. The Nebraska State Treasurer serves as trustee of the plan; OFIPI serves as the investment manager, with the oversight of the Nebraska Investment Council; and servicing agent: OFDI serves as the distributor: Union Bank & Trust (“Union Bank”) serves as the program manager. The State Farm College Savings Plan is not insured or guaranteed by State Farm, Oppenheimer, Union Bank and Trust Company, the Trust, the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, any of their respective affiliates, directors, officers or agents, or any other entity.
State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 412 KB) .
Need Assistance? 1-800-447-4930
