Dems: Saving for college enhances success

March 30, 2016
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Low-income students with as little as $500 saved for college are three times more likely to enter college and four times more likely to graduate, studies show. That has prompted the Legislature to create additional ways for Iowans to save for college.

 

Iowa doesn’t currently allow nonprofits to administer college savings accounts. As a result, some Iowa schools have organized plans in other states. For example, Utah’s 529 college savings program allows nonprofits to establish an account for individual savings plans.

 

SF 2301, which won unanimous approval in the Senate, will allow Iowa nonprofits to do the same through the State Treasurer’s College Savings Iowa program.

 

It’ll encourage more Iowans to start early, plan for their future and save for college. It’ll also help nonprofits spend less time administering scholarship programs and more time raising money for kids.

 

The bill is now being considered by the Iowa House.

 

Information on College Savings Iowa is available at www.collegesavingsiowa.com.

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