College Savings Initiative

Archives: College Savings Initiative Policy Papers

Enhancing Tax Credits to Encourage Saving for Higher Education

  • By
  • Mark Huelsman,
  • New America Foundation
November 1, 2010

The federal tax system contains numerous credits, deductions, and incentives for individuals and families to build wealth and make goals like higher education more accessible and affordable. By May 2010, over 129 million American taxpayers filed federal income tax returns from the previous year, ninety-six million – or three-fourths – of which resulted in a federal refund. The average federal refund was $2,887 for all taxpayers, and low- and moderate-income (LMI) families in particular tend to receive larger tax refunds relative to annual income.

Programs:

College Savings Initiative Federal Legislative Priorities

  • By
  • Mark Huelsman,
  • Jackie Williams,
  • New America Foundation
July 15, 2010

Tax Incentives for College Savings

Include 529 plans as an Eligible Product for the Saver’s Credit, and Make the Credit Refundable

Currently, taxpayers aged 18 years or older who are not dependents or full-time students may receive a nonrefundable Saver’s Credit equal to between 10 and 50 percent of their compensation up to $2,000 contributed to an employer-sponsored qualified retirement plan or IRA.

Programs:

The Potential of Inclusive 529 College Savings Plans

  • By
  • David Newville,
  • New America Foundation
May 12, 2010

The Importance of College Savings

There is strong evidence that attaining a college education is one of the best ways for low- and moderate-income students to climb the economic ladder.

Programs:

529s and Public Assistance

  • By
  • Rourke OBrien,
  • New America Foundation
November 10, 2009

529s are tax-advantaged accounts designed to help families save for post-secondary education.

Programs:

Low-Cost State Policy Innovations to Help Families Save for College

  • By
  • Mark Huelsman,
  • New America Foundation
  • and Margaret Clancy, Policy Director, Center for Social Development, Washington University in St. Louis
November 3, 2009

At a time when low-income students are underrepresented in higher education and the cost of attendance is becoming increasingly unaffordable, 529 college savings plans have the potential to address issues of college readiness, access and completion. Savings can help reduce higher education debt, making college more affordable, and has the potential to change aspirations and behaviors of both students and their parents. Research from the asset building field shows that even a relatively small amount of savings may have positive impacts on behavior and educational achievement.

Programs:

Increasing College Completion Among Low-Income Students through Savings

  • By
  • David Newville,
  • Mark Huelsman,
  • New America Foundation
October 19, 2009
Earlier this year, the Obama Administration released a bold new plan for improving the state of higher education in the United States. Its fiscal year 2010 budget proposal included several items aimed at increasing postsecondary education enrollment and completion rates, and decreasing the financial burden that college represents to many lower and middle class families. [1] These proposals include reforming the federal student loan program, expanding Pell Grants for low-income students, and creating a new College Access and Complet
Programs:

Five Low-Cost Federal Policy Ideas to Help Families Save for College

  • By
  • David Newville,
  • Rourke OBrien,
  • New America Foundation
  • and Margaret Clancy, Policy Director, Center for Social Development
April 29, 2009

The Potential of 529 College Savings Plans

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 small amount of savings can have positive impacts on behavior and

Programs:

The Basics of Progressive 529s

  • By
  • David Newville,
  • Ray Boshara,
  • New America Foundation
  • and Margaret Clancy, Project Director, Center for Social Development; Michael Sherraden, Director, Center for Social Development
February 24, 2009

Background on 529 college savings plans

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.

Programs:

Reforming 529 College Savings Plans to Better Reach Low-Income Families

  • By Margaret Clancy, Project Director, Center for Social Development
March 1, 2006
Qualified Tuition Plans, commonly called “529 plans” after the applicable section of the federal tax code, were implemented in their present form in 2001. These state-sponsored plans can help families save for their children’s college education, or an adult can open an account to use for their own post-secondary expenses. Under current law, earnings and qualified withdrawals are exempt from federal income tax liability.
Programs:

Building the Financial Bridge to College

  • By
  • Anne Stuhldreher,
  • New America Foundation
December 1, 2005

California has the opportunity to make 529 accounts more attractive to low- and moderate-income families by providing a match for savings they put towards a college education.

Programs:
Syndicate content