If you’re a typical parent, it’s likely you’ve never heard of the Michigan Education Trust (MET) but it spearheaded the 529 plan movement. Proposed in 1986, this program was intended to “help parents guarantee their children the opportunity of a Michigan college education.” This new fund afforded parents the option to pay a nominal stipulated amount in return for the state agreeing to pay tuition at any Michigan public college.
American students collectively carry more than $1.5 trillion in student loan debt while college expenses continue to rise rapidly every year. Many parents suffer the fate of witnessing their children graduate amid crippling debt. What steps can be taken to prevent this?
Sending children to college can be one of the most rewarding experiences of a parent’s life. The excitement of watching your son or daughter start a new journey, coupled with the promise of all the wonderful things they’re going to learn can bring immense joy. Knowing that the next few years will be a transformative experience, parents try to prepare for the road ahead as best they can. But let’s face it, the prospect can be a bit overwhelming. The cost of college has been rising steadily for decades. This is why parents need to know about the 529 plan!