(Photo Credit: Fort Collins Coloradoan)
KUSA - When paying for college, more families are making it a family affair.
The Financial Research Corporation, which tracks 529 investment plans, said nearly 10 percent of contributions now come from grandparents. This is a big increase from the previous years.
A 529 plan is operated by the state or educational institution. It has tax incentives. Contributions are not deductible on federal tax returns, but your investment grows are tax-deferred.
Regina Lewis a 529 Plan Expert said it's almost too much of a cost for any single student or parents to absorb on their own.
The average college student graduates from college with $26,000 in debt.
Parents and grandparents aren't the only ones who can contribute to the 529 plan. In fact, Lewis suggests family members could donate to the fund, instead of giving sweaters and video games as gifts.
"Everyone can contribute what they can," Lewis said. "Then you get the value of compound interest and it all adds up."
TIAA-CREF Financial Services launched a contest last week. It's called "Big Dreams Start Small College Fund."
Contestants can win up to $100,000 for their college fund.
For more details on the contest visit their website here: http://bit.ly/18IyB8j.
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