Are you prepared for the cost of college?

College today is expensive. But can you imagine what it will cost four years from now? Eight years? When your child is ready to enroll?

College education expenses have grown roughly 5.53% on average since 1997, easily outstripping inflation, which rose only 2.54% on average during the same period. If costs continue to rise at that pace, today's first-graders--the class of 2015--will need more than $100,000 to attend a public, in-state university for four years--and double that for a private institution.

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.


Source:  State Farm Projections assume an increase of 6 percent per year, based on average cost for 2005-2006 school year.

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 269 KB) .

Need Assistance? 1-800-447-4930

AP2008/04/0412