Families saving for college urged to use state plan

(Harrisburg) — Families saving for college using a state-backed plan are being encouraged to put away some more money before the end of the month.

State Treasurer Rob McCord says money invested in the state’s 529 Guaranteed Savings Plan by Saturday will benefit from a quick boost in value.

Growth in the plan is tied to tuition inflation, which is factored in on September 1.

McCord says purchasing credits in the plan is a very safe investment.

“Here we have a program in Pennsylvania’s Guaranteed Savings Plan, what’s called the GSP, that protects your principle, so you’re protected from a downside hedge, and that grows at the rate of tuition inflation, which has been much higher than inflation throughout the rest of the economy.”

The state is offering free enrollment for new 529 accounts opened before the end of the month.

Pennsylvania families contributed more than $182 million to the plan last year and saw a 7.7 percent increase in the fund’s value.