Cost of College, Value of an Education

The Increasing Value of a College Degree

The true value of a college degree is clear when you consider a child’s future earnings potential and career path. However, the cost of college is also higher than ever. A CollegeAccess 529 Plan Account can help manage the cost of higher education.

Afford the college of their choice
Since 1976, the cost of college has risen at two to three times the rate of inflation and faster than increases in income for most families. For the 2010– 11 academic year, The College Board® reported that the rise of college tuition for private colleges has increased by 4.5% while public universities have increased tuition by 7.9%. The ten-year historical rate of increase is approximately 6%, which is substantially higher than the general rate of inflation. ¹

Projected Tuition

Help a child earn more as a college graduate
There are few things that are of greater value than the opportunity provided by a college degree. Research has shown that, on average, college graduates, aged 25-34, earn almost 60% more annually than individuals with only a high school degree. And over a lifetime, those with a college degree earn well over $1 million more than those without.¹

Watch their career take flight
A higher education can provide more than just higher earnings. According to the U.S. Department of Labor, a college degree typically results in more career options, greater promotion opportunities, more vacation time and other benefits, and lower unemployment rates. It can also pave the way for graduate school, which may lead to even greater earnings and benefits.

1. Source: SavingforCollege.com, 2011.

NOTICE: CollegeAccess 529 Plan accounts are not insured by any state, and neither the principal deposited nor any investment return is guaranteed by any state. Furthermore, the accounts are not insured, nor the principal or any investment return guaranteed, by the federal government or any federal agency.

Before investing, an individual should consider whether their state of residency — or their intended designated beneficiary's state of residency — offers any benefit, such as a state tax deduction, or any other benefits that are only available for investments in that state's 529 savings program.

An investor should consider the investment objectives, risks, and charges and expenses of the CollegeAccess 529 Plan before investing. This and other important information is in the Plan Disclosure Statement, which should be read carefully before investing, and which is available on this Web site. Click here to download a copy.

The Program Manager for the CollegeAccess 529 Plan is Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY 10019-7585, 1-866-529-7462. The Plan is issued by the South Dakota Higher Education Savings Trust and is underwritten by Allianz Global Investors Distributors LLC.

Withdrawals from a 529 Plan for qualified expenses are free from federal income tax. Qualified expenses include tuition and fees, room and board, books and other supplies.

State taxes may apply for residents of states other than South Dakota. Speak to your tax or financial advisor.

Non-qualified withdrawals are subject to federal income tax and a 10% penalty tax on earnings, with some exceptions, and may also be subject to state tax.

Please see the Plan Disclosure Statement for our privacy policy.