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?

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.

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.

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.

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, 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

AP2008/10/1287