What does flipping through a magazine in a doctor’s office have to do with saving for college? For Brenna DeLaine, a physician herself, it resulted in saving thousands of dollars for her children’s higher education tuition costs.
It was about 16 years ago when Brenna came across an article on saving for college. She already had opened state prepaid 529 accounts for her two children, Jai and Matthew, who were 10 and 7 at the time, so she was saving for them. “College costs were exploding, so the idea of starting early with a prepayment plan was appealing to me,” Brenna said.
Brenna said there was no question: Her children were going to attend college, and she instilled that into them at an early age. They were aware that their mom was saving for their college.
“I set up the initial 529 plans because I wanted them to have the privilege of going to a four year college and to stay on campus. The experience of college matters,” Brenna said.
“When I was growing up, my brothers and I understood we were going to college. Both of my parents were college grads. My grandparents on one side were college grads. So, it was firmly established that we were going to college. My brothers and I had to work during college. My children were also required to work during college. I am responsible for necessities and my children have to work for spending money. But when I found out how much college costs were rising and began reading articles about people that were in heavy debt, I became concerned and panicked a little bit – more like a lot!”
That’s why the magazine article piqued her interest.
“I was sitting in the doctor’s office reading an article by Suze Orman about saving for college with 529 plans,” Brenna said. “The article mentioned Private College 529 Plan, which lets you prepay private college tuition at today’s rates. That opened up more choices.”
Private College 529 is the one 529 plan not run by a state, but by hundreds of participating colleges and universities, and they guarantee the tuition you prepay. That intrigued Brenna, who had recently changed jobs. She had a very small retirement plan from her previous employer, so she decided in addition to her state’s prepaid 529 plan she would also invest in Private College 529.
“I took that small retirement savings combined with other savings and opened the Private College 529 plan for my daughter, because she once mentioned that she wanted to go to Spelman College in Atlanta,” she said. Brenna herself graduated from Spelman College, before earning her M.D. at Meharry Medical College in Nashville, TN. She aimed to save two years’ tuition.
Matthew had showed an interest in state colleges, so Brenna opened a state 529 college savings account for him to go along with his prepaid plan. “I was using all the 529 options I could because of my worry about rising costs,” Brenna said.
Future doctor and lawyer
Jai, now 26, did follow in her mom’s footsteps by attending Spelman College. She graduated and is now going in her fourth year of medical school at University of South Carolina School of Medicine in Greenville.
Matthew, now 23, graduated from Wofford College, a private institution in Spartanburg, S.C. He is a second-year graduate student at Penn State with plans to attend law school, Brenna said. “Thanks to their 529s, they’re both out of undergrad debt-free, so for graduate school I just pay the rent from the state 529 plan,” Brenna said.
For Brenna, the 529 college plans were most certainly success stories for her family. Throughout the process, Brenna said one of the best parts about the plans – in addition to the appealing tax incentives – was their flexibility. She also liked the ability to be able to transfer any funds left over from Jai’s account to Matthew’s.
“I really liked being able to call the 529 people whenever I have a question,” Brenna said. “It was easy to talk to real people and to get right answers.”
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