October 02, 2023
Making smart education loan decisions
As you plan for your loved one’s future education, your savings strategy should include a review of student loans and what part they may play in paying for education expenses. And if you have a recent graduate, understanding repayment options is an important next step.
Alaska 529 has partnered with our program manager, T. Rowe Price, for valuable perspectives on understanding student loans. Certified Financial Planner Roger Young shares his insights in an article called How to Make Smart College Loan Decisions and Evaluate Loan Forgiveness Options. Check it out to understand why he recommends limiting debt to federal direct student loans, and how the various repayment options can affect your loved one’s future financial situation.
A few key takeaways from the article:
- Researching the types of loans and repayment terms is a critical step.
- Limit debt to federal student loans if possible.
- Depending on your income, an income-driven repayment plan might lower your payments.
Alaska 529 is here to support you on your education savings journey, with a commitment to the high level of service you deserve. For more information on the benefits of saving with Alaska 529, visit our Why Alaska 529 page.
By clicking on any third-party hyperlink, you will leave the Alaska 529 site. Alaska 529 has not been involved in the preparation of the content from third-party providers and does not explicitly or implicitly endorse or approve such content. In addition, the plan does not alter or change such content as it is provided. The source of all content is clearly and prominently identified.
If you are not an Alaska resident, you should compare this Plan with any 529 plan offered by your home state or your beneficiary’s home state and consider, before investing, any state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in the home state’s plan. Please read and/or download the Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing, or call 1-866-277-1005 to request a paper copy. T. Rowe Price Investment Services, Inc., Distributor/Underwriter.
1Each quarter, Savingforcollege.com analyzes the investment performance figures for thousands of 529 portfolios, comparing the reported investment performance of a subset of portfolios from each 529 savings plan to produce their rankings. As of 6/30/2023, the rankings for Alaska 529 were: 9 out of 55, 5 out of 53, 4 out of 43, and 3 out of 34 for the 1-, 3-, 5-, and 10-year periods respectively."
Portfolios from direct-sold 529 plans are assigned to a specific asset allocation category. Within each category, portfolios are compared and ranked based on published investment returns. Separate rankings are produced for different performance periods (1-, 3-, 5-, and 10-year investment periods). An overall (or "composite") performance score is calculated for each 529 plan for a given performance period based on the plan's performance rankings for each asset allocation category, taking into account the varying returns among the different asset allocation categories. To produce the composite ranking for a plan, the plan's composite performance score is compared with the composite performance scores of all other 529 plans.
Past performance cannot guarantee future results. Current performance may be lower or higher than performance results used for these rankings, resulting in different rankings that may be lower than those shown.
202310-3190207
