Governor Bill Lee has issued a proclamation declaring September as College Savings Month in Tennessee. To celebrate, State Treasurer David H. Lillard, Jr. and the TNStars College Savings 529 Program are giving away three $529 scholarships this month.
Tennessee residents age 21 and older can enter the scholarship giveaway online at TNStars.com/scholarship on behalf of a child age 15 or under, now through September 30, 2020. Winners will be announced October 1, and scholarship money will be deposited into a TNStars account.
The College Savings Month Proclamation states that national student loan debt has surpassed $1.6 trillion. One way families can help avoid student loan debt is by opening a 529 college savings account. The TNStars College Savings 529 Program was created to encourage Tennessee families to save and invest for the future cost of higher education in a tax-advantaged way. Families can open an account with as little as $25 to start.
Research shows that students with dedicated savings for college are about seven times more likely to attend college than children with no dedicated account. TNStars offers quality investment options at a low cost, so families can save more money for college. Even small, consistent contributions to a 529 account can make a big impact over time.
“It’s important to start saving early, so that compounding interest works for you rather than against you with student loans,” said Treasurer Lillard. Money invested in a TNStars account grows tax-free when used for qualified higher education expenses including tuition, room and board, books, computers and more.
TNStars is a program of the Tennessee Department of Treasury. To learn more about TNStars or to open an account, visit TNStars.com.