Financial Aid

• 529 Basic Information
• 529 Contributions
• 529 Withdrawals
• Financial Aid

Q: How will investments in the plan affect my beneficiary's chances of receiving financial aid?
A: The eligibility of the beneficiary for financial aid may depend upon the circumstances of the beneficiary's family at the time the beneficiary enrolls in an institution of higher education, as well as on the policies of the governmental agencies, school or private organizations to which the beneficiary and/or the beneficiary's family applies for financial assistance. These policies vary at different institutions and can change over time. Therefore, no person or entity can say with certainty how the federal or state aid programs, or the school to which the beneficiary applies, will treat your account. However, financial aid programs administered by agencies of the State of Nebraska will not take your account balance into consideration, except as may be otherwise provided by federal law.

Q: How do scholarships and other financial aid affect my account?
A: If the beneficiary of your account receives a scholarship or other financial aid, the beneficiary may no longer require all of the funds in the account. In that case, IRS Publication 970 indicates that you may withdraw funds from your account up to the amount of such scholarship or other financial aid. The earnings portions of the withdrawal will be included in your ordinary income, but no federal penalty tax will be assessed, and the Trust will not assess a contingent deferred sales charge if the scholarship or aid is a scholarship, allowance or payment described in section 25A(g)(2) of the Code.

You may also transfer the amount withdrawn in a qualified rollover distribution, in which case no amount of the withdrawal will be included in your income.

Please refer to the Enrollment Handbook (PDF 260 KB) for more information on The State Farm® College Savings Plan.

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"), Invesco Aim Distributors, Inc. and the State of Nebraska, 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 managed and distributed by Invesco Aim Capital Management, Inc. ("Invesco AIM") and its affiliates. The Trust offers other accounts that are not affiliated with the plan. State Farm does not provide investment management services for the plan and the accounts in the plan are not insured or guaranteed by State Farm, Invesco Aim, 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.

Invesco AimSM is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Invesco Aim Distributors, Inc. is the distributor for the retail mutual funds, exchange-traded funds and U.S. institutional money market funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd.

State Farm and Invesco Aim are not affiliates. Invesco Aim Distributors Inc. is the distributor of the plan.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 260 KB) .

AP2008/04/0403