(SIOUX CENTER, IA) Right now saving for college can be more difficult than ever. One option you may not have heard of: the Independent 529 Plan. It's available at about 250 schools across the country, including three right here in Northwest Iowa.
Dordt College in Sioux Center is home to about 1,300 full-time students.
"I don't know, for some people it was a lot scarier to come back this year because they just weren't sure if the money was going to be there or not," says Danielle Roos, Dordt College senior.
Yearly tuition is roughly $21,700 and senior Danielle Roos bears that burden all on her own.
"Coming up with the finances for 2nd semester can always be a little bit tougher than 1st semester, which is right after summer, you know, you have money," says Roos.
Semester to semester or year to year, finding college funds can be tough, especially for families who lost a big chunk of their investments in the past year.
"You don't have any time if your son or daughter is 18 to try and recoup that loss, they need the money to attend college now," says Arlan Nederhoff, Vice President of Business Affairs.
So Dordt is offering something a little different.
"The Independent 529 Plan really shifts the risk of the market from the individual parent or student onto the institution that they decide to attend," says Nederhoff.
Paying for tomorrow's tuition at less than today's price.
"The tuition that you pay would be based on the current year's price that you buy even though your son or daughter may not be attending for 15 or 18 years," says Nederhoff.
"My parents went here too so they would tell me stories of how much they had to pay. And now, I'm like, wow that would have been so nice if I had to pay that amount," says Roos.
Even if college is years away, the Independent 529 Plan allows families to think about the future now and lock in a guarantee.
Northwestern College in Orange City and Buena Vista University in Storm Lake also offer the plan. You can open an account online at www.Independent529Plan.org.
Reported by Erika Thomas. You can contact her at ethomas@kmeg.com.
