With the cost of higher education on the steady rise in America, it has become commonplace for college students to graduate with copious amounts of student loan debt. 

A 2016 Survey of Consumer Finances done by the Federal Reserve found that the average American now holds more than $30,000 of student debt. Saving for your child’s college is a goal that the majority of parents hold; however, it’s never an easy process. While when and how to start saving is dependent on your personal financial situation, there are a variety of account types available for when you’re ready. The OCSP, or Oregon College Savings Plan, is a popular option among Oregonians. 

Many things are appealing about the state-sponsored 529 plan. Nearly anyone can start a fund, as long as you have a tax ID or Social Security number and you’re a citizen or resident of the U.S. (the same restrictions apply for beneficiaries of the fund). The funds piled in the savings plan also grow tax-free — something that often isn’t the case for other college savings plans. These funds can be used for tuition, room and board fees, books, and other select supplies at any school that meets the requirements for federal financial aid, including community colleges, graduate schools, and trade schools. The annual fees this account holds are fairly reasonable; dependent on the portfolios you select, there is a  0% to 0.466% annual investment fee on your total savings and a flat annual fee of  0.25% on the total savings to run the account. 

One drawback of the Oregon College Savings Plan is that as of 2020, it lost its income tax deduction benefits. Prior to this change, you were able to deduct $2,435 (or $4,865 if joint filing) for contributions made to the OCSP during the previous year. Now, the program offers a $150 individual (or $300 joint) tax credit for those who contribute to an OCSP account. With this change, individuals are not able to take the deduction more than once for more than one account. 

If saving for your child’s higher education is important to you, it’s crucial that you explore and research your options — the earlier, the better. Whether you choose to do so individually or with a financial advisor, consider the Oregon College Savings Plan in your decision-making — it’s a plan that has worked well for many Oregonians in the past and continues to be trusted by many today.