Saving a little regularly can be big college help

Since the 1998 launch of College Savings Iowa, Iowa's 529 plan, my efforts in raising awareness about saving for college have increased. I have worked to help families understand the value of saving for college now rather than borrowing when the time comes. While tens of thousands of families are saving through College Savings Iowa, many still find themselves taking out student loans.

I had the opportunity to visit with President Barack Obama when he was in Iowa about concerns with the potential interest rate increase for student loans. The president and I share one very strong belief. We need to make college affordable.

The president wants Congress to pass legislation that will stop student loan interest rates from doubling July 1. The average amount Iowa students will borrow next year is more than $4,000. If the interest doubles, this will cost students an extra $993 during the life of that loan.

My advice has been to start saving early and regularly. A small amount of money, saved on a regular basis over an extended period of time, can grow into a substantial amount. Saving early may help reduce a family's need to borrow to cover educational expenses, which will help parents - and their children - get through college with less debt. Families who have been unable to save enough shouldn't be penalized by having to pay more in student loan interest.

Since a college education is an investment that lasts a lifetime, we need to make sure that it is a good investment for our youth. I encourage Iowans to ask Congress to support Obama's plan to keep student loan rates from doubling.

Michael Fitzgerald

State treasurer