college savings

On March 6, the state of Maine became the first in the United States to make college savings for newborns universal and automatic, putting into practice research pioneered by Michael Sherraden, PhD, the George Warren Brown Distinguished University Professor and director ofthe Brown School’s Center for Social Development at Washington University in St. Louis.

State-sponsored college savings plans, often called 529 plans, offer tax incentives to facilitate saving for postsecondary education. Low- and moderate-income families are less likely to have college savings than higher-income families. To address this inequity, a number of states have launched 529 savings match incentive programs. A recently released CSD report examines the program design of all state 529 savings match programs and offers recommendations aimed to facilitate access, increase program participation and perhaps reduce administrative costs.

A 10-year study on Child Development Accounts (CDAs) has confirmed their viability as a tool for long-term asset building. Beginning as early as birth, CDAs are investment accounts that allow parents and children to accumulate savings for post-secondary education, homeownership or business initiatives. 

The New America Foundation and Center for Social Development at Washington University announced May 21 a new College Savings Initiative to examine and improve 529 college savings plans so more people have the opportunity to attend and complete college.

The New America Foundation and Center for Social Development (CSD) at Washington University in St. Louis announce a new College Savings Initiative to examine and improve 529 college savings plans so more people have the opportunity to attend and complete college. “Saving money is not easy, but research shows many people can save when they have incentives and a way to do so. More low-income families may save with well-designed 529s and incentives,” said Margaret Clancy, Policy Director at CSD. “We will study 529 innovations to see which ones are effective. This will inform 529 policy so that it can benefit families of all income levels.”

More than 1,000 Oklahoma babies have received a $1,000 jump-start on saving for college, thanks to SEED for Oklahoma Kids (SEED OK), a seven-year study designed to determine the economic and educational impact of “seeding” a college savings account for children at birth. SEED OK is a collaboration between the Oklahoma State Treasurer and the Center for Social Development at the George Warren Brown School of Social Work.

More than 1,000 Oklahoma babies are receiving a $1,000 jumpstart on saving for college thanks to SEED for Oklahoma Kids (SEED OK), a seven-year study designed to determine the economic and educational impact of “seeding” a college savings account for children at birth. SEED OK, announced June 3 by Governor Brad Henry and State Treasurer Scott Meacham, is a collaboration between the Oklahoma State Treasurer and the Center for Social Development (CSD) at the George Warren Brown School of Social Work at Washington University in St. Louis.