What will it cost annually to send your third grader to a public university in 2014? $16,770. Yes, you're reading it correctly - $16,770! It's hard to believe, isn't it? According to the Princeton Review, the average yearly cost of a post-secondary education in 2014 will be nearly $20,000.
Five years ago the State of Kansas recognized the trend and took action to help Kansas families save for college by creating Learning Quest, the Kansas 529 Post-Secondary Education Savings Program. Since its inception in 1999, Learning Quest has grown to more than $1 billion in assets and nearly 80,000 accounts. In fact, in the August 15 edition of Newsweek, Learning Quest was cited as one of the top five 529 plans in the country.
To celebrate Learning Quest, September has been proclaimed "College Savings Month" in Kansas. I can't think of a better way to kick off the back-to-school season! Learning Quest offers Kansans an easy, affordable way to invest for a post-secondary education, along with great tax benefits. We have many exciting activities planned this month, including a birthday party for Learning Quest at a non-profit human service agency dedicated to enriching the lives of Kansans. We are also sponsoring our annual essay contest for middle school students.
For the fourth year, seventh and eighth grade students at all of Kansas' private, public and home-based schools will be asked to write an essay describing a profession of interests to them and explain the steps they should take in their lives to prepare for that profession. One winner and one runner-up will be chosen per grade to win a $1,000 or $500 Learning Quest investment account and a celebration party for his or her class or family. I encourage parents, teachers and students to visit www.learningquest.com/essay to download the official entry forms. All contest entries must be received by Friday, September 30, 2005.
Learning Quest was created by the legislature, is administered by our office and the funds are professionally managed by American Century Investments, Inc. Under the state's contract, 100% of all expenditures related to the program, including advertising and promotion, are paid for by American Century.
Learning Quest offers tax advantages under both Kansas and federal laws. Under current law, the money grows tax-free if it is used for a qualified education expense. We are working with our Washington lawmakers to ensure this benefit is made permanent by offering our support to a bill recently introduced in Congress.
In addition, a Kansas taxpayer may take an annual deduction of up to $3,000 ($6,000 for married, filing jointly) from their Kansas adjusted gross income for contributions into each beneficiary's Learning Quest account.
We have worked hard to expand and enhance the investment options available to account holders in order to provide more flexibility and control. Investors can now choose from products including age-based American Century portfolios, multi-manager products available through Schwab, and our latest addition - Vanguard Index funds.
Earlier this year Learning Quest established a partnership with BabyMint, a loyalty program that gives Kansas families an extra boost to their 529 contributions with purchases they are already making for things like school supplies, groceries or clothing. There is no cost to register your account and you will receive rebates of up to 30 percent on purchases made through BabyMint's nationwide network of hundreds of retailers. Parents, grandparents, other family members and friends can participate by directing rebates into the same 529 account. To get more information, visit www.BabyMint.com.
As a mother of two young children I am pleased to be a Learning Quest account owner. I hope you will look into starting your own account for that special child in your life. It will be a relief to you when you receive the tuition bills!
