College Savings Month Recognized in North Dakota

Community Announcement

BISMARCK - Bank of North Dakota (BND) along with College Savings Plan Network has declared September as College Savings Month to encourage families to plan ahead for the cost of college attendance. North Dakota is one of many states to develop and implement a college savings plan. College SAVE, the state’s 529 Higher Education Savings Plan makes it easy and affordable for an average family to save for higher education costs in advance and reduces the need for student loan borrowing.

According to Student Loans of North Dakota, the total average cost for tuition, fees and room & board for in-state students attending a North Dakota public four-year college in 2009-10 is $14,945, approximately a five percent increase from the previous academic year.

“Receiving some type of advanced, post-secondary education creates many opportunities for students and their families,” said Eric Hardmeyer, president of Bank of North Dakota which administers the College SAVE plan. “By saving in advance for educational goals, families can reduce their students’ debt-load substantially after graduation.”

College SAVE utilizes several benefits including a state tax deduction on contributions and state and federal tax-free distributions of earnings when used for qualified higher education expenses. Another popular component of the plan includes a state matching grant in which qualified account owners can receive up to a $300 match from Bank of North Dakota. In some cases, the match can be made for three consecutive years. Account owners are able to invest their contributions into several investment options, including three age-based portfolios which become progressively more conservative as the student nears high school graduation and prepares for college.

College SAVE has seen dramatic growth since its inception in 2001. The plan currently serves over 18,000 account owners with assets totaling nearly $266 million. Since 2007, North Dakota resident account participation has increased 240 percent in the plan.

The nation’s only state-owned bank, BND was established in 1919 to encourage and promote agriculture, commerce and industry in North Dakota. BND is overseen by the Industrial Commission of North Dakota, consisting of Gov. John Hoeven as chairman, Attorney General Wayne Stenehjem, and Agriculture Commissioner Doug Goehring.

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