College savings plans or 529 plans, named after the Internal Revenue Code section, are designed so individuals can make after-tax deposits for future higher education expenses (tuition, fees, books, supplies, and equipment) at colleges, universities, vocational schools, or other postsecondary educational institutions. Administered by state Treasury Departments, all 50 states and the District of Columbia have college savings plans in operation. College savings plans may provide good partnerships with Individual Development Accounts (IDAs). Several states encourage participation in college savings plans by low-to-moderate income families through matched savings. Other states already have links to IDAs. These
precedents for outreach and inclusion may offer lessons for future policy and program development.
Project: College Success
Citation
Clancy, M. (2003). College savings plans and Individual Development Accounts: Potential for partnership (CSD Policy Report No. 03-28). St. Louis, MO: Washington University, Center for Social Development.