AAmericans owe about $1.6 trillion in student debt, according to Pew Research. Now, I want to be clear: This is a significant amount of money that is difficult for many families to manage, but I don’t think it’s fair to ask taxpayers to cover the costs that others have incurred. Imagine how unacceptable it would be for the government to force you to pay your neighbor’s credit card bill! In my opinion, it is equally outrageous to ask you to pay off your neighbor’s student loans.

Mississippi, however, offers families a better way to prepare for the cost of a college degree — one that offers benefits whether you want to become a plumber, electrician, accountant or doctor.

When families invest in a MACS account, they can begin earning tax-advantaged interest on money that can be used for job training, laptops, classroom supplies, tuition, doctoral programs, etc. This flexibility is what excites many families, but the affordability is also not something to be scoffed at. Accounts can be opened with a contribution of as little as $25, and more can be deposited each month so families can watch their savings grow.

The MPACT program is another option. This one costs a little more up front, but can help protect families against years of rising tuition costs. Specifically, MPACT allows families to lock in current tuition costs and pre-pay for college. Open registration for MPACT runs until May 31. To learn more, visit treasury.ms.gov/MPACT.

It is important to note that parents are not the only ones who can open a MACS or MPACT account. Grandparents, friends and relatives can also do this. For MACS, the person opening the account must be a US citizen. For MPACT plans, they must also be a Mississippi resident and be a parent or grandparent. There are some important advantages to having plans owned by someone outside of the student’s immediate family.

In fact, Congress passed the FAFSA Simplification Act in 2024. Under the bill, a MACS or MPACT plan owned by someone other than the student’s parents does not count as student income, removing a huge obstacle and further increasing the value of these important programs!

Another important improvement passed in 2022 called the SECURE Act. This bill allows families to transfer up to $35,000 in unused MACS or MPACT dollars into a Roth IRA over a five-year period. The rollover is also tax and penalty free!

I encourage you to take advantage of one of these plans if you have a young person in your life to reduce or avoid student loans altogether. For assistance, please contact my team at (601) 359-5255 or by email at [email protected].

Mississippi Treasurer David McRae is the 55th Treasurer of the State of Mississippi. For more information, visit Treasury.MS.gov.