LOUISIANA

Louisiana Student Tuition Assistance and Revenue Trust Program (START)

Type: Savings

Phone: 800-259-5625

State tax deduction for residents: Deduction for contributions up to $2,400 per beneficiary

Open to nonresidents: No

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $10 / $197,600

Other: Matching grant of 2% to 14% of contributions, depending on family income

Louisiana has free money on the table for contributors to this plan. Contributions of at least $100 a year get a matching grant that ranges from 14% for households with income less than $30,000 to 2% for households earning $100,000 or more. However, the plan does not invest in stocks; its earnings on a portfolio of bonds have averaged about 6% annually. Thus, the plan is a great place to park college savings you'll need within a few years, and is also suited to very conservative investors.

The state pays all the plan's administrative expenses, another big plus. You get to keep the grant even if the beneficiary attends college out of state. But you forfeit it, plus 10% of earnings, if the money is never used for college. The savings plan can also be used by adults saving for graduate school.

State College Savings Plans