1. Go to the website www.misavescom and read about the college savings plan. One of the graphs on the information page is given below. 5.39 Funded use Student Loan Funded Education Source: Savrngtorcollegecom This chart hypothetically assumes tour years of college (current annual cost of $20 000) for a child born today To meet that expense 18 years from now. you would need to save $448 per month {from birth} In a 529 plan totaling 5201-66. 5113000 in contributions and $94,456 in earnings. assuming a conservative 5 percent college cost inflation rate and a 5 percent annual investment return. If the same finds were borrowed to pay for college rather than saying and investing your child would graduate omng about 8276.383 In loans This translates Into a monthly payment of approxnmalely $2303 over 10 years' assuming a 6 percent loan Interest rate In other words, college would end up costing an additional $163 383 or more than double in out-ol-pocket costs. than it you had saved and untreated in advance This chart is for Illustrative purposes only. Account value in the Investment Options I5 nol guaranteed, and will uctuate With market condllions