State offers tax-free way to save for college

State offers tax-free way to save for college

(WMC-TV) – A lot of parents want their children to go to college, but for many, the costs put that dream out of reach.

A new savings program could help to make those dreams more attainable.

The Tennessee Stars College Savings 529 Program offers students a low cost, tax-free way to save for school.

"Tennessee Stars makes it easy to save. It is easy to enroll and it's easy to manage either online, by phone, or through the mail. In fact, you can open an account today with as little as $25," said Tennessee Treasurer David Lillard, Junior.

Tennessee Governor Bill Haslam sees the program as a means to develop a highly-educated workforce which attracts businesses and new jobs to the state.

"There are a lot of issues around why Tennessee is behind the national average in college attendance and college graduation, but affordability and access is at the heart of those issues," said Governor Haslam.

With the new savings program, you have control over how your investments are managed with individual investment options.

There is also an age-based option with more aggressive higher earning investments for younger children. Those become more conservative as the child reaches college age.

For a lot of parents and children, Tennessee Stars may be the best way to reach for the stars starting with a college education.

The Tennessee Department of Education will give a $50 dollar matching gift to any Tennessean who opens an account with $50 dollars.

And if you roll over the entire account balance of any other 529 college savings plan you'll get $100.

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