College Savings Initiative

At a time when low-income students are underrepresented in higher education and the cost of attendance is becoming increasingly unaffordable, 529s have the potential to address issues of college readiness, access and completion.  College savings can help make higher education more affordable, and have the potential to change aspirations and behaviors of both students and their parents.  Research from the asset building field has shown that even a relatively

Key talking points on 529 plans, their current flaws, and how progressive features might remedy them.

Washington, DC -- The New America Foundation commends Vice President Biden and the Obama Administration's Middle Class Task Force for their announcement today to review 529 plans to make them more effective and reliable. The announcement came during a meeting in St. Louis, Missouri on College Affordability. "529s are a great vehicle for college savings for many better-off families, now the challenge is to make them a good deal for low- and middle-income families as well," said Ray Boshara, Vice President of Domestic Policy Programs… more

On Tuesday, March 31, the New America Foundation's Education Policy Program hosted "The Future of Federal Student Loans." This event featured representatives from the Obama administration, the student loan community, and New America's Education Policy Program to discuss the pros and cons of the President's proposal to stop guaranteeing federal student loans and to instead make the loans directly.

In 2001, the Internal Revenue Code authorized college savings plans (529 plans) as a tax-advantaged savings tool. In a 529 plan,[1] individuals save money in an account that is dedicated for future college expenses of a beneficiary. States administer 529 plans, and offer a limited selection of funds with a range of risk and return characteristics.[2] In

For all publications, press, and updates from the College Savings Initiative, please visit the Initiative's new website, CollegeSavingsInitiative.org. 

As a Policy Analyst for the Asset Building Program, David Newville researches and analyzes savings and ownership policies that promote economic security and advancement for low- and middle-income families.  He… more

As Program Associate in the College Savings Initiative, Mark Huelsman researches and promotes policy ideas to make 529 college savings plans more progressive and accessible to low-income populations. In addition, he helps to support the initiative’s communications and operations. Mr. Huelsman previously served as Program Associate to the Asset Building… more

This month, as parents of college-age students sign promissory notes for student loans and watch tuition checks diminish their bank accounts, Congress is encouraging all parents to wake up and start planning. While National College Savings Month -- meant to spread awareness about the need to save for higher education -- has a laudable goal, promoting the importance of saving won't do much to help struggling families afford the cost of higher education.

Barack Obama wants to give families a refundable $4,000 tax credit for college, if their children complete a required amount of community service. It's a fine, conventional Democratic idea. It could be a lot more powerful, though, if Obama coupled it with an old Republican favorite - depositing his $4,000 credit into private accounts like the so-called 529 plans that so many upper-income families use to save for college.