Climbing costs make college savings more important than ever

Americans continue to have trillions of dollars in debt, but it might not be where you think it is.

The average credit card debt is $15,162 -- a staggering amount, when one considers that the average interest rate being charged on that debt is nearly 15 percent, and that we've amassed $846.2 billion in plastic debt.

We pay lower interest rates, but we owe more in another category, student loans, which average $33,445 and which have climbed to a total of nearly $1.03 trillion, up 12.5 percent since last year.

Unless a student has a clear career path capable of paying off such debt, it's become such a problem that some are urging students to stay out of college and pursue an apprenticeship or other training for good-paying careers that don't require formal academic degrees. Other students, some 400 percent more than a few years ago, are fleeing to Canada where college degrees are a relative bargain.

For students who are not prepared to leave the country or abandon college plans, the situation makes McCook Community College, traditionally one of the least expensive colleges in the nation, all the more attractive.

It also makes even more sense for parents to take advantage of the Nebraska Educational Saving Trust, Nebraska's 529 college savings plan, promoted by State Treasurer Don Stenberg this week.

Despite increasing costs, "higher education is one of the best lifetime investments a family can make," Stenberg said on 529 College Savings Day Wednesday. "At NEST, we talk about children dreaming of their future and parents and grandparents saving for those dreams. I suggest you take time to talk to your children and their educational goals and to discuss as a family how you will pay for the expenses associated with higher education, including tuition, books, class fees and housing. Look into NEST. You will find a variety of investment options depending on your needs and your investment priorities."

NEST is affordable for families across income levels since there are no minimum contribution requirements. It's flexible and affordable to meet any family budget. A family does not have to contribute a large sum, but rather, for example, can save as little as $10 a month in a plan. It all adds up.

Unlike other college savings options, a 529 plan account owner controls the account and can change the beneficiary to another eligible family member with no tax penalty if the account beneficiary's future educational plans change.

NEST accounts can be used at four-year colleges and universities, as well as at community colleges, technical schools, and graduate schools.

NEST accounts can be used at institutions in Nebraska and outside the state and in some other countries.

NEST accounts can be used to pay for approved college expenses, including tuition, books, fees, and some housing costs.

NEST accounts can be used by adults returning to college to finish degrees or start new.

NEST accounts can be set up by parents, grandparents, aunts, uncles, and family friends. Also adults can set up accounts for themselves.

NEST accounts also may be set up as part of an estate planning process.

For more information, visit https://www.nest529 direct.com/