Not only is college expensive, but technical issues with this year’s online FAFSA form for student loans have confounded many college applicants in recent months. Tennessee, on the other hand, has a program to assist families in saving so that they do not incur significant debt after college.
“It can make a huge difference,” stated Shelli King, communications director for the Tennessee Department of Treasury.
King wants parents to know about the Tennessee Investments Preparing Scholars (TIPS) program, which offers free college tuition.
“TIPS offers a 4-to-1 matching grant for income-eligible families into their TNStars accounts,” he added. “We’re trying to make sure we’re reaching more and more families with the program.”
This is how TIPS works:
- Open a 529 college savings account with TNStars College Savings.
Fill out the TIPS application. - If your family’s income qualifies, TIPS can match your investment four to one.
“Save $25 between now and the conclusion of the qualifying period, and TIPS will deposit $100 into a TNStars account for your child. Save $125 between now and the qualifying period, and you will receive a complete $500 matching grant for the year,” King added. “Families can get up to $1,500 per child over their lifetime.”
A family of four earning less than $75,000 per year would qualify. However, you’ll want to move quickly because this year’s qualifying period expires on June 30.
When your child is ready for higher education, whether it’s a two-year program, a four-year program, or a technical school, you may use those funds for tuition, books, and computers, and the earnings are tax-free.
“In the savings world, start saving early to benefit from compounding interest. “You earn interest on your interest, which helps your savings grow over time,” King explained.
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