College costs are rising, making it more and more difficult for low-income children to pursue their educational goals. There are scholarships, grants and financial aid, but this is often not enough to make college affordable for children from low-income families.
As a result many big cities are testing out a new program that may help. For example, the city of New York will soon launch a college savings program called the New York's 529 College Savings Program Direct Plan that will make college a reachable goal for many low-income children in the local area
The three-year pilot program will create college savings accounts for thousands of NYC public school kindergartners, and will take affect in Fall 2017.
What exactly is it, and how does it work?
A 529 college savings account is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. The full value of the account can be used at any accredited college or university in the country.
The program is made possible by a generous donation of $10 million from the global head of real estate at the investment firm Blackstone Group.
However, to be eligible for the program, low-income families are required to save up on their own as well. Those who meet the requirements will receive $100 deposited into a 529 college savings account, and will also be eligible to receive another $200 over the next four years.
For more details, visit www.nysaves.org
