Group targeting low-income families for 529 plans

The College Savings Initiative will hold its third round table tomorrow in Washington to discuss ways to make Section 529 college savings plans more widely available to lower-income families. “We'd like to see innovative and creative changes to 529 plans that would allow them to be more inclusive,” said Jackie Williams, director of the group. Launched this year, the College Savings Initiative is a joint venture of the Washington-based New America Foundation and the Center for Social Development at Washington University in St. Louis. The round table will focus on government savings policies and 529 plans. Matching programs for low-income families and utilizing 529 plans for adults going back to school will also be among the topics discussed, Ms. Williams said. “There's frustration among plan managers that they weren't able to get the number of low- and moderate-income families they would have liked,” she said. “We'd like to find out what can serve as a catalyst, and focus attention and energy on college education for these groups.” A leading figure in the industry, Ms. Williams became head of the group last month after serving as executive director of the Ohio Tuition Trust Authority in Columbus. She is also a former chairwoman for the Lexington, Ky.-based College Savings Plan Network. The group's last round table, held June 12, discussed proposed changes to federal financial-aid programs and was attended by representatives from the Department of the Treasury and the Department of Education, state 529 plans, student loan giant Sallie Mae of Reston, Va., and the Washington-based National Association of Student Financial Aid Administrators. Ms. Williams said she is encouraged by the Obama administration's “receptivity to look at new ideas.” In another initiative to enhance 529 plans, an ad hoc group of experts in the college savings industry last month issued a white paper and policy recommendations on “Improving Access to Higher Education by Promoting Savings.” Ms. Williams was a contributor to that white paper, which was written by James “Jamie” Canup, managing partner for 529 Counsel PLC in Richmond, Va., and Liz Robinson, vice president for Newton, Mass.-based Upromise Inc. The white paper recommends creating a federally funded campaign of public service announcements to boost awareness and adoption of 529 plans. In addition, it suggests providing an incentive for employers to offer 529 plans as part of benefits packages to employees by passing legislation that would permit non-taxable employer matching contributions. E-mail Charles Paikert at [email protected].