Inclusion in College Savings Plans:

1
Inclusion in College Savings Plans Research and
Policy Innovation Margaret Clancy Center for
Social Development Washington University in St.
Louis NAST Treasury Management
Conference Scottsdale, Arizona December 6, 2004
2
CSDs Goal in Asset Building
Research and policy innovation to promote saving
and investment among low-income families
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529 Savings Plan Work in Progress

• Study of 529 savings accounts for Head Start
  families in Michigan
• Ford Foundation and other funders
• Connecting EITC recipients with 529 matching
  grants
• Annie E. Casey Foundation
• Survey of Maines NextGen 529 matching grant
  participants
• Lumina Foundation for Education

4
New Savings Initiative
CSD is seeking to partner with a state to design
and implement an inclusive and progressive
Childrens Savings Account Initiative for
state-resident families.
5
Childrens Savings Account Initiative

• A multi-year policy and research initiative
  modeling a universal childrens saving account
• With potential to influence federal policy
  discussion and debate
• To be integrated into an existing policy
  structure (the states 529 savings plan)

6
Childrens Savings Account Initiative

• Deposit 1,000 into the accounts of 1,000
  newborns selected at random
• Expand samples of African Americans, Latinos, and
  American Indians
• Deposit up to 250 each year over 4 years, with
  greater deposits for low-income families
• Track their families plus families
• of 1,000 controls over multiple years

7
Childrens Savings Account Initiative

• State will be selected through competitive grant
  proposals
• Research will include saving actions and
  attitudes of plan participants
• Findings will be shared through multiple
  publications and presentations

8
Selected States Role

• Contribute to the initiative design prior to
  implementation
• Consult on drawing a random sample from the birth
  population
• Collaborate with states 529 provider and CSD on
  project implementation and management

9
Tentative 2005 Timeline

• RFP released in May-June
• Proposals from state July-August
• State selected in September

10
Funders

• This initiative is possible through financial
  support from
• Ford Foundation
• Charles Stewart Mott Foundation

11
Partners

• This initiative is undertaken in partnership
  with
• CFED
• University of Kansas School of Social Welfare
• New America Foundation
• Initiative on Financial Security of the Aspen
  Institute

12
College Savings Plans
ASPIRE Act

• America Saving for Personal Investment,
  Retirement, and Education (ASPIRE)
• Every child born in 2006 and beyond would receive
  a 500 deposit
• Children from households below median income
  would receive a supplemental deposit and be
  eligible to receive matching funds

13
Bi-partisan Support

• The ASPIRE Act is bi-partisan. It was introduced
  by
• Senators Santorum (R-PA) Corzine (D-NJ)
• Representatives Ford (D-TN)
• Petri (R-WI)
• Kennedy (D-RI) English (R-PA)

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Long-term Vision
Life-long asset-accumulation by people at all
income levels
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Resources and Contact Information
Center for Social Development Washington
University in St. Louis Website
http//gwbweb.wustl.edu/csd Phone (314)
935-8178 E-mail mclancy_at_.wustl.edu