College kickstarter accounts begin with babies born in 2020
Gov. Jared Polis and CollegeInvest announced the launch of First Step, a new program that gives every child born or adopted in the state of Colorado, beginning Jan. 1, 2020, a $100 contribution to their CollegeInvest 529 college savings account.
The program is funded and administered by CollegeInvest without the expense of taxpayer dollars and is the result of a bipartisan bill (HB19-1280) Polis signed into law last year.
“My administration is committed to investing in education and focused on driving down costs. CollegeInvest is a critical tool to help parents and guardians save for their child’s education. This new law will incentivize the use of these tools by providing birth or adoptive parents with $100 to kick start their child’s savings,” said Polis.
“We know that students with some college savings from low- and middle-income families are three times more likely to enroll in college and four times more likely to graduate than those without a 529 plan. I appreciate the support of Rep. Herod, Sen. Fenberg, Speaker Becker and other state legislators for their efforts to get this important bill passed,” he said.
In announcing the launch of First Step, Angela Baier, CollegeInvest’s CEO, commented, “Every dollar saved counts when it comes to paying for education, and First Step will help Colorado families get their college savings plans off to a strong start, right from the beginning.”
“Opening a CollegeInvest 529 college savings account for a child at birth allows more time for savings to accumulate and interest to accrue. And, we know that having a college savings account has significant impact on the development of college-bound identity, especially among children of limited opportunity,” she said.
First Step was created as a catalyst to help Colorado families save for their children’s postsecondary education, nurture aspirations for higher education and develop essential financial literacy skills. CollegeInvest is Colorado’s not-for-profit state agency charged with helping working families prepare for the cost of postsecondary education and reduce student loan debt, especially for lower- and middle-income families.
“The vast majority of Colorado’s future jobs require an education beyond high school. This early investment ensures our students have a head start in saving for that future. By knocking down yet another barrier, we ensure more students reap the benefits of a postsecondary credential,” said Dr. Angie Paccione, executive director of the Colorado Department of Higher Education.
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