Repay Student Loans with Funds in Your College Savings Iowa Account

June 25, 2024

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DES MOINES, Iowa – State Treasurer Roby Smith is sharing about the versatility of the College Savings Iowa 529 plan. “While many know their College Savings Iowa accounts can be used to pay for education expenses beyond tuition, some may not know up to $10,000 in account funds can be used for repayment on any qualified education loan of the Beneficiary or sibling of the original Beneficiary,” said Smith.

According to Federal Student Aid, 45 million Americans – roughly 13% of the U.S. population – have outstanding student loans. As of March 2024, Iowa had more than 429,000 borrowers with outstanding education loan debt of over $13 billion; the largest group of Iowa borrowers were those aged 25–34. “The flexibility of a College Savings Iowa account can help scholars beyond their years in education!” Smith concluded.

College Savings Iowa is a way for parents, grandparents, other relatives and friends to invest on behalf of a future scholar. In addition to education loan repayment, funds in College Savings Iowa can be used for qualified expenses ranging from tuition, room and board, books, supplies and more at trade schools, apprenticeship programs, two- and four-year colleges, graduate schools, and other eligible education institutions in the U.S. and abroad. Additionally, up to $10,000 per year can be used to pay for tuition expenses in connection with enrollment at a K-12 institution.

To learn more about the Plan, visit CollegeSavingsIowa.com or call (888) 672-9116. Connect with College Savings Iowa on Facebook, Instagram and X to stay informed on current events and updates. For additional details about the Plan, read the Program Description.

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