A NEST EGG
All Pennsylvania newborns to get a $100 grant toward college
Well, it’s at least a start. College can be brutally expensive, but starting Jan. 1, every child who is a Pennsylvania resident at birth — or adopted by a family in this state — can receive a $100 grant toward their campus savings under a program the General Assembly passed and Gov. Tom Wolf signed last week.
The Keystone Scholars program, part of the just-approved sate budget for 2018-19, was unveiled at a February news conference by officials, including state Treasurer Joe Torsella.
The grants, established at birth through the Pennsylvania 529 Saving Program, are intended to get families thinking early about saving for college. With passage of the program, Pennsylvania becomes the largest among nine states that offer such a savings program, his office said.
The $100 scholarship-grant will grow through investment in a PA 529 account, Mr. Torsella’s office said, and is not paid for by the General Fund or other taxpayer dollars. Instead, it is supported through surplus investment earnings within the PA Guaranteed Savings Program and private donations.
The amount itself may not seem breathtaking. But the investment could grow in 18 years to roughly $200 and about $400 by age 29, the maximum age a child can use the grant under the program, state Treasury spokeswoman Heidi
Havens said Wednesday.
If families are moved to kick in at least $25 a month themselves, that amount could reach $10,000, she said.
“Research has shown that a baby with a higher-education savings account at birth is three times more likely to pursue education or training after high school, and four times more likely to graduate,” said Mr. Torsella at the news conference, which was also attended by representatives from the General Assembly and the Pennsylvania Higher Education Assistance Agency and others.
The least expensive tuition for a four-year program in Pennsylvania is the $7,492 yearly rate charged by the State System of Higher Education.
The Keystone money can go toward any qualified expense at an approved higher education institution, including four-year campuses, trade schools, vocational programs, community colleges and out-of-state universities.
The program is designed initially to support payments for140,000 newborns. Under a pilot program, residents in six counties — Delaware, Elk, Luzerne, Indiana, Mifflin and Westmoreland — already are pre-registering for the scholarship-grants.