Governor Sonny Perdue Proclaims September 'College Savings Month'

Georgia Higher Education Savings Plan (GHESP) Recommended by Money Magazine for State Residents

ATLANTA, Sept. 15 /PRNewswire/ -- Governor Sonny Perdue has proclaimed September "College Savings Month" in Georgia. The Governor presented the proclamation at the State Capitol in Atlanta to a group of children who are beneficiaries in the program, and encouraged Georgia residents to save for a child's college education. The Governor also highlighted the success of the Georgia Higher Education Savings Plan (GHESP), Georgia's state-sponsored 529 college savings plan.

"As we celebrate College Savings Month, we want to remind families to save for their children's college education," said Governor Perdue. "By starting to save and plan for college today with a Georgia Higher Education Savings Plan account, families can make college more affordable tomorrow."

The GHESP, which is administered by TIAA-CREF, a national leader in managing 529 college savings plans, covers tuition and other qualified college expenses such as books, room and board, and fees at any of Georgia's higher education institutions and at colleges nationwide.

Since being launched in April 2002, the GHESP has been widely recognized as one of the best college savings plans in the country. Most recently in the August issue of Money magazine, the GHESP was one of the plans recommended by the publication for residents of Georgia. Assets in the GHESP have also grown significantly since inception, growing some 58% from $190 million in September 2004 to $300 million as of September 2005. In addition, the total number of GHESP account increased by one-third, up from 45,000 at the end of September 2004 to nearly 60,000 in September 2005.

Chuck Penuel, Director of the Georgia Higher Education Savings Plan (GHESP), who was also present at the press conference said, "A college education can double a child's earnings potential in his or her lifetime. College Savings Month serves as an important reminder for families to begin saving and investing in their child's future now."

GHESP Highlights:

* State Income Tax Deduction - Account owners who file an itemized Georgia
tax return can take an annual state income tax deduction of up to
$2,000.00 per beneficiary if they qualify based on income level.
Contributions postmarked by April 15 can be applied to the previous tax
year.

* Tax-Free Growth and Withdrawals - Contributions to GHESP accounts grow
free from federal and state income tax. Through the power of
compounding, the money saved in a tax-deferred account can provide
greater potential for growth. And withdrawals used for qualified
education expenses, including tuition, room and board, fees and books
will be free of both federal* and Georgia** income tax.

* Estate Benefits - The GHESP offers generous federal gift and estate tax
advantages of up to $55,000 ($110,000 for married couples) pro-rated
over a five-year period for each beneficiary.

* Investment Options - The GHESP offers families five investment options:
Guaranteed, Managed Allocation (also known as an "age-based" investment
option), Aggressive Managed Allocation, 100% Equity Fund, and a Balanced
Fund option.

* Low Expenses - The GHESP has low costs so more of your investment can go
toward education expenses. The low annual asset-based management fee of
0.85% covers all expenses associated with the Plan.

The program web site - http://www.gacollegesavings.com/ - provides complete information and includes on-line enrollment and other on-line services. Information and applications can also be obtained through a customer service center, 1-877-424-4377 (toll free). There are no income or residency restrictions on who can open an account.

For more information about Georgia's Section 529 college savings plan, contact Chuck Penuel at 404-463-0000 or by email at chuckpenuel@otfs.ga.gov.

*The law allowing federal tax-free qualified withdrawals is set to expire on December 31, 2010. Congress may or may not extend the law beyond this date. **Withdrawals for qualified expenses are free of Georgia income tax after the account has been open for one year.

Account value will fluctuate based upon a number of factors, including general financial market conditions. Investments are made through Teachers Personal Investors Services, Inc., distributor. The State of Georgia, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America, and its affiliates do not insure any account or guarantee its principal or investment return (except for the guarantee of TIAA-CREF Life Insurance Company to the Board of Directors of the Georgia Higher Education Savings Plan under the funding agreement for the Guaranteed Option).

If you are not a Georgia resident or if you have taxable income in another state, you should consider whether that other state plan offers a 529 plan with favorable state income tax or other benefits that are not available if you invest in the Georgia 529 plan.