College is one of the largest expenses many families will ever face. Tuition, fees, housing and books add up quickly, and student loans can follow graduates for years. Starting a dedicated savings plan early gives your money more time to grow and makes that future bill far more manageable.
Louisiana families have a state-sponsored option designed for this goal: the Louisiana Student Tuition Assistance and Revenue Trust, better known as the START Saving Program. It offers several benefits that make it a natural next step once your own foundation is in place.
How START works
START is Louisiana's 529 college savings plan, administered by the Louisiana Office of Student Financial Assistance. Contributions are invested in your choice of options, including age-based portfolios that become more conservative as your child nears college. Earnings grow free of federal and Louisiana income tax, and withdrawals are tax-free when used for qualified expenses such as tuition, fees, books and certain housing costs.
Louisiana taxpayers may also deduct contributions on their state income tax return, up to an annual limit per account, with unused amounts generally carried forward to future years. Funds can be used at eligible colleges, universities and technical schools across the country.
The earlier you start saving for college, the more time your money has to grow.
Earnings Enhancements and practical tips
One feature that sets START apart is Earnings Enhancements, a state matching deposit for eligible Louisiana account owners. The match is a percentage of your contributions, with higher percentages for families with lower incomes, and it is added to the account to grow alongside your own savings.
Automate a monthly contribution, even a small one, and increase it as your income grows. Invite grandparents and relatives to contribute for birthdays and holidays. Scholarships such as the Taylor Opportunity Program for Students can also reduce the total cost for students who qualify.
Most importantly, keep your own retirement on track. Students can borrow for school, but there are no loans for retirement, so a balanced roadmap keeps both goals moving forward together.
The advisors at Next Wealth Finance help Louisiana families build college savings into a clear, step-by-step plan. Contact us for a free next-step review.