College savings programs need more attention from lawmakers and college access advocates. That was the consensus of a policy research roundtable on financial aid policy and 529 plans held last week. NASFAA staff and members participated in the roundtable that was co-sponsored by the New America Foundation and the Center for Social Development at Washington University in St. Louis. The roundtable was one in a series of such discussions to advance the College Savings Initiative.
The College Savings Initiative, which was launched this year, seeks to encourage all Americans to save and prepare for postsecondary education by promoting progressive policies for 529 plans. Specifically, the initiative wants to promote the use of college savings plans by low and moderate-income individuals.
Participants in the financial aid policy and 529 plans roundtable spent a day discussing the following topics:
- Connecting early Federal Pell Grants to 529 plans;
- Using 529 plans to pay off student loans;
- Interaction between 529 plans and Title IV aid; and
- Steps colleges and universities can take to encourage the use of 529 plans.
Participants agreed that now is the time to advocate for changes to 529 plans that would encourage their use, and recognize the need to link the promotion of college savings with additional support structures to prepare students from under-represented groups for postsecondary education.
Through the National Conversation Initiative (NCI), NASFAA has advocated for an increased national commitment towards government-sponsored and augmented college savings accounts.
"College savings create a strong message to families that higher education is not only possible, but expected," the report states. "Truly encouraging college access, however, requires an ongoing, hands-on approach that helps students prepare for college financially, academically, and mentally."
Posted 06/17/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.
