New app seeks to help parents of college students
Junior Jake Espinoza uses his smart phone. Grand Valley has their own smart phone applications that students can download.
Jan 20, 2011
As students decide where they want to go to college, their parents wonder how they will pay for it. A savings program recently released a new app to help families with the financial aspects of a good education.
The Michigan Education Savings Program features tax advantages designed to help the parent or guardian of a student who wants to attend college.
Renee Hill, program manager for MESP in TIAA–CREF Tuition Financing, said MESP also offers an in-state income tax deduction.
“There is also a potential state income tax deduction on contributions for Michigan taxpayers and tax-free growth on earnings if account proceeds are used to pay for qualified college expenses,” she said.
The app will be available for multiple hand-held devices including the iPhone, iPod Touch, Android, Palm Pre, Pixi and Blackberry Torch. For Android and iPhone owners, MESP added a calculator to the app to help customers project how much money they could possibly save.
According to a press release from Pace & Partners about the MESP app, since TIAA–CREF Tuition Financing started managing the MESP over 10 years ago, the program has helped over 105,000 families invest more than $2.5 billion toward college.
The app, the TIAA–CREF College Planner, allows account owners to make transactions as they would on their website, www.misaves.com.
Hill said MESP created the app because with the increase in smart phone use, parents will be able to access the MESP app anywhere. According to a study by ComScore, more than 45.5 million people in the U.S. owned a smart phone in 2010.
“With smart phones becoming more and more popular, MESP wants to make sure we have the tools to keep up with busy parents and grandparents,” she said. “People are on the go, so now Mom or Dad can check their MESP account balances or make a contribution, even if they at a soccer game.”
Within the app, the user will be able to access their account, make contributions and withdraw from their account.
Because people use technology differently, Hill said MESP would like to help a wide range of people, not just the technology savvy.
“MESP will continue to offer personal service so customers who do not want to rely on technology can still speak to an experienced MESP consultant on the phone or in person,” she said. “The application was built because we do have account owners who prefer to use technology and online features.”
Michelle Rhodes, director of Financial Aid at Grand Valley state University, said savings programs, if started early enough, can benefit both the student and the parents.
“College can be a big expense for families, and it seems to come up so quickly,” she said. “If parents or guardians can start saving early and get involved in programs that save money for college, it can only be a benefit to the student and the family.”
