Puerto Rico 529 Plan Rules And College Savings Options
Puerto Rico doesn't offer its own 529 plan. It also does not offer its own 529A Able Plan.
If you live in Puerto Rico, there are still options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to Puerto Rico. Each state and territory has different rules when it comes to 529 plan savings. Here are the Puerto Rico 529 plan rules.
Average Cost Of College In Puerto Rico
When saving for college in Puerto Rico, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 158 colleges and universities in Puerto Rico.
The total average cost of college (Cost of Attendance) in Puerto Rico for in-state residents is $20,146 for 2024. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $8,313 for 2024. The cost of tuition in Puerto Rico has been rising at about 2% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Explore the data here.
Puerto Rico 529 Plan Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Puerto Rico does not offer anything for contributing to a 529 plan. As a territory, it conforms with federal law for 529 plan rules.
Puerto Rico 529 College Savings Plan Options
Puerto Rico doesn't offer its own 529 plan program. However, you can still use a 529 plan to save for college - and you can take advantage of the best in the country.
Puerto Rico 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
Puerto Rico doesn't offer its own ABLE plan, but residents can use any plan nationwide.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
Puerto Rico Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Clint Proctor Reviewed by: Ashley Barnett
