The Dream Out Loud Challenge
From February 1st 2010 through April 12, 2010, Minnesota students were invited to submit a video, essay, poem, or original drawing for their opportunity to win $2,500 for college. The question posed to students was simple, "How will I change the world after I go to college?" The answers, however, we're not. The Challenge was sponsored by the Minnesota's 529 College Savings Plan, in was a partnership with the Minnesota Department of Education, the Minnesota Elementary School Principals Association, and the Minnesota Office of Higher Education.
One winner was chosen in each of the following grade categories: Grades 5 through 6, grades 3 through 4, and grades Kindergarten through 2nd grade. For the winning students in each of their categories, each was awarded $2,500 for college while each of the winners' schools were awarded $1,000. The Dream Out Loud Minnesota Challenge notified schools statewide as well as publishing a very-well received press release in order to get the word out in regards to The Challenge.
VelataDavid Metzen, director of the Minnesota Office of Higher Education had this to say about The Dream Out Loud Challenge, "This challenge is another way to encourage students and families to think about the future," adding, "We want families to look ahead and to be sure they have an understanding of college costs and know their options when it comes to saving for higher education." You can also check out more Scentsy to see how their fundraising thought the sales of Scentsy bars through Independent Consultants has provided contributions to schools and other causes. https://scentsified.scentsy.us/Scentsy/Bio
The Winners of The Challenge
| Grade | Winner |
|---|---|
| GRADE K - 2 |
Name: Lucas Farrar-Collins School: Kenwood Community Elementary School City: Minneapolis, MN |
| GRADE 3 - 4 |
Name: Grace Thelemann-Bianchi |
| GRADE 5 - 6 |
Name: Austin Charrier |
An Introduction to 529 Plans
A 529 plan is a savings strategy designed to motivate saving for a child's future college tuition costs. The official name for a 529 plan is "qualified tuition plans" and these plans are sponsored by educational institutions, state agencies, and by the individual states themselves. The name "529 plans" gets its name because of the Internal Revenue Service code in which the authorization occurs. This is similar to how the name "401(k)" got its popular name.Two Types Of 529 Plans
There are 2 versions of 529 plans: the college savings plan and the pre-paid tuition plan. Every single one of the United States offers at least one version of a 529 plan. Additionally, both universities as well as private colleges sponsor pre-paid tuition plans.
The Differences Between Pre-Paid Plans and College Savings Plans
Pre-Paid Tuition Plans
Pre-paid tuition plans mostly authorize college savers to pre-purchase units, or "credit-hours," at approved and participating college campuses and universities for future tuition costs. In some situations, room and board costs are also authorized for saving plans. In general, most pre-paid college tuition savings plans are sponsored by state governments and all partipants must meet certain eligability requirements. Some states' governments go so far as to guarantee the investments in the pre-paid college tuition programs that they sponsor. One of the best advantages of the pre-paid savings plan is the ability to lock in current tuition prices at eligible public and private colleges and universities. You should check with your state's 529 plan administrator to verify if your state has a pre-paid 529 plan investment guarantee.
College Tuition Savings Plans
529 College Tuition Savings Plans allow a college saver, called the "account holder", to save for a child, called the "beneficiary." These savings are solely earmarked with the intent of paying for the beneficiary's eligible college expenses. The account holder can choose between a variety of investment alternatives for their contributions. The 529 plan then invests those monies on behalf of the account holder. An account holder's investment options include investment types that are appropriate for the account holder. An account holder would consider their tolerance for risk, how close the child is to attending college, as well as other factors. Typically, investment options include age-based portfolios which would shift funds to more stable investment alternatives as the child approaches their college attendance dates and more aggressive options earlier in the investment life cycle. Account holders can also invest their 529 plans into bond mutual funds, stock mutual funds, and money market funds. It's important to note that the option to invest a college savings plan into mutual funds are not guaranteed by state governments nor are they federally insured.
Take a look at the chart below for more comprehensive information as well as the differences between college savings plans and pre-paid tuition plans:
| Prepaid Tuition Plan | College Savings Plan |
| Locks in tuition prices at eligible public and private colleges and universities. | No lock on college costs. |
| All plans cover tuition and mandatory fees only. Some plans allow you to purchase a room & board option or use excess tuition credits for other qualified expenses. | Covers all "qualified higher education expenses," including:
|
| Most plans set lump sum and installment payments prior to purchase based on age of beneficiary and number of years of college tuition purchased. | Many plans have contribution limits in excess of $200,000. |
| Many state plans guaranteed or backed by state. | No state guarantee. Most investment options are subject to market risk. Your investment may make no profit or even decline in value. |
| Most plans have age/grade limit for beneficiary. | No age limits. Open to adults and children. |
| Most state plans require either owner or beneficiary of plan to be a state resident. | No residency requirement. However, nonresidents may only be able to purchase some plans through financial advisers or brokers. |
| Most plans have limited enrollment period. | Enrollment open all year. |
Source: http://www.sec.gov/investor/pubs/intro529.htm , U.S. Securities and Exchange Commission
Important Facts About the Minnesota College Savings Plan
The Plan is administered by the Minnesota Office of Higher Education. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager.
Consider the investment objectives, risks, charges and expenses before investing in the Minnesota College Savings Plan. Please call toll-free 1 877 338-4646 for a Disclosure Booklet containing this information. Read it carefully.
Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state’s 529 plan.
The State of Minnesota, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company’s guarantee to Minnesota College Savings Plan under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.
The Minnesota College Savings Plan Web site blog is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet.
The Minnesota College Savings Plan Web site contains links to other Web sites. Neither Minnesota College Savings Plan nor TIAA-CREF Tuition Financing, Inc. and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.
TIAA-CREF Tuition Financing, Inc., Program Manager.
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