Louisiana Offers Great Ways to Save for Your Child’s Education
PRESS RELEASESeptember 6, 2023
MEDIA CONTACTS
Shayne Creppel, Director of Collegiate & Community Outreach: shayne.creppel@la.gov
Ebony Holmes, Director of Public Information & Advising: ebony.holmes@la.gov
Brian Cook, Public Relations Specialist: brian.cook@la.gov
Louisiana Offers Great Ways to Save for Your Child’s Education
Baton Rouge, LA- The Student Tuition Assistance and Revenue Trust Program, commonly referred to as the “START Saving Program,” is a college savings plan designed to help families contend with the growing costs of educating their children after high school.
Administered by the Louisiana Office of Student Financial Assistance (LOSFA), under the direction of the Louisiana Tuition Trust Authority (LATTA), the START Program is a Qualified Tuition Program under section 529 of the Internal Revenue Code.
START, a savings account for college, was created to help families contend with the future costs of higher education. Parents, grandparents, and others who want to assist in funding a child’s education can establish an education savings account through the START Saving Program for each child (the account beneficiary). In addition to deposits made by account owners, the state provides a match of 2-14% of annual deposits, called Earnings Enhancements, depending on the income of the account owner. In addition, the START Saving program provides a tax deduction of $2,400 for an individual and $4,800 for married couples filing jointly.
LOSFA also administers the START K12 Saving Program. START K12 allows families to save for tuition expenses related to attendance at eligible Louisiana schools that provide kindergarten through twelfth grade instruction. An eligible school is “a public or approved nonpublic elementary or secondary school in Louisiana that contains any of the grades kindergarten through twelve.” A list of approved schools can be found here.
Similar to the START program, START K12 accounts can also be opened by parents, grandparents and others who want to assist in funding a childs’ education. START K12 provides a tax deduction of $1,200 for an individual and $2,400 for married couples filing jointly.
A 529 plan is a tax-advantaged investment plan designed to help families save for a child’s or grandchild’s education expenses. Savings in a 529 plan grow free from federal income tax, and withdrawals remain tax-free when used for qualified higher education expenses.
START qualified expenses are limited to tuition, fees, books, supplies, equipment, room/board and expenses for special needs. START K12 qualified expenses are limited to tuition at approved Louisiana schools.
