Eligible Families Could Receive up to $225 for College
We all know that attending college is one of the single most important factors that can help to ensure the success of our youth; but, we also know that the rising cost of higher education is making it increasingly difficult for many families to afford it.
Did you know that kids from families who save any amount for college are SEVEN TIMES more likely to attend college than kids from families who don’t save?* It’s true!
At the Center for Financial Empowerment, one of our goals is to connect County residents to information and services that can help build household wealth and assets. We are proud to partner with ScholarShare529 to raise awareness about a new opportunity to help low-moderate income families jump start their college savings plan.
Matching Grant in 2018
Getting started is often the hardest thing for many people. ScholarShare 529, California’s College Savings Plan, is here to help and wants to make a higher education accessible for all. Starting January 1, 2018, ScholarShare 529 is partnering with the Department of Consumer and Business Affairs and community-based organizations throughout the state of California raise awareness about a Matching Grant Program for families who make $75,000 a year or less.
“By opening a ScholarShare529 account today and putting in just a small amount of money, you are taking advantage of an investment tool that will exponentially grow your money over time,” said California State Treasurer John Chiang. “Regardless of how much you are able to save, getting started is the key to help get your child to college and ScholarShare 529 will be there throughout the journey.”
Dollar-for-dollar match and tax-free growth
The Matching Grant Program will give a dollar-for-dollar match up to $200 to those families who open new accounts. Plus, families who enroll in an automatic monthly contribution plan of $25 or more will receive another $25! In addition to growing 100% tax free, savings in a ScholarShare 529 account will not impact eligibility for most state benefits, such as CalWORKs and CalFresh.
“While scholarships, financial aid and grants can make college more affordable, increasingly families and students are being asked to shoulder an ever-increasing part of the cost of a higher education degree,” said Brian Stiger, Director, Department of Consumer and Business Affairs. “This Matching Grant Program will be a tremendous benefit to helping families overcome escalating tuition costs. We are excited to partner with ScholarShare529 and inform County residents about this resource.”
529: A great plan for any student
A 529 plan is an investment account that offers families a way to grow their college savings tax free. The funds are used for qualified educational expenses including books, supplies and tuition at community colleges, trade schools and universities. To be eligible, families must be California residents, have valid Social Security Numbers or Federal Tax Identification Numbers, and earn $75,000 annually or less. The beneficiary of the account must be 14 years of age or younger.
About ScholarShare 529
ScholarShare 529 is administered by the ScholarShare Investment Board, which is chaired by California State Treasurer John Chiang. Since its launch in 1999, ScholarShare 529 has helped thousands of families save for a higher education and has grown its total plan assets to $8 billion as of October 2017.
To learn more about the ScholarShare 529 Matching Grant Program and for additional information about eligibility, please visit http://mgp.scholarshare.com/ . If you would like to speak with an agent, please call 800.544.5248.
*The PEW Charitable Trusts, Children’s Savings Accounts Help States Create “College-Going Culture”, April 6, 2015.