Kentucky Higher Education Assistance Authority
College Savings Month
Governor Ernie Fletcher has signed a proclamation declaring September “College Savings Month” in Kentucky. College Savings Month is a nationwide effort by the College Savings Plans Network (CSPN) to encourage families to save for their children’s higher education.
“Kentucky provides a wonderful opportunity to help its families prepare for future college costs through the Kentucky Education Savings Plan Trust,” Gov. Fletcher said. "In today’s economy, a college education or technical training is critical to ensure economic opportunity for our citizens and the entire Commonwealth.”
The Kentucky Education Savings Plan Trust (KESPT) is referred to as a “529 plan” because it qualifies for special tax benefits under Section 529 of the Internal Revenue Code, including exemption of earnings from federal taxes. Earnings are also exempt from Kentucky income taxes.
KESPT helps families save for a child’s higher education. An account may be used to pay any qualified higher education expense, including tuition, fees, supplies, books, equipment required for enrollment, and certain room and board expenses, depending on a student’s housing and enrollment status. An account may be opened for a beneficiary of any age and the account owner determines the method, schedule and amount of contributions.
KESPT is administered by the Kentucky Higher Education Assistance Authority (KHEAA), the state government agency that administers need-based grants, merit-based scholarships, work-study and loan programs to help pay for higher education.
For more information about the Kentucky Education Savings Plan Trust, call 1-877 KY TRUST (598-7878) or visit www.kysaves.com.