NJBEST

Kids Chalkboard

Borrowing to pay for college

Invest now or borrow later?

Borrowing money is one way to pay for college. But if you begin investing now in a college savings account, you'll have the opportunity to grow your investments instead of paying interest on a loan. Investing ahead of time can cost you a lot less than borrowing. 

NJBest - Tax-Free Investing

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Investors should carefully consider college savings plan investment goals, risks, charges and expenses before investing. To obtain a disclosure document, which contains this and other information, talk to a financial advisor or call Franklin Templeton Distributors, Inc., the manager and underwriter for a 529 plan, at (877)4NJ-BEST. You should read the disclosure document carefully before investing and consider whether your or the account beneficiary's home state offers any state tax or other benefits that are only available for investments in its qualified tuition program.

  1. Source: SallieMae.com. Based on subsidized Stafford Loans for undergraduate students issued by Sallie Mae at a fixed interest rate of 5.60% from 7/1/2009 to 6/30/2010. Examples are for illustrative purposes only, are not representative of any particular investment. Investments do not guarantee any specific rate of return, and you may have a gain or a loss on the amounts invested. Periodic investing plans do not assure a profit and do not protect against loss in a declining market.
  2. Source: The College Board, Trends in College Pricing, 2009. Projected cost upon child's entrance to college for four years at a public or private college. Figures are based upon the 6.53% and 5.20% 10-year average annual increase in public and private college costs, as reported by The College Board for the 2009-2010.