Ninety-seven percent of kindergartners citywide have access to a New York City Scholarship Account, a type of college savings plan with an initial investment of $100. The program Save for College is provided by the city in hopes of giving students an avenue to pay for college or career training and closing the generational pay gap, the mayor announced Wednesday.
“We need tangible and practical solutions to reduce the racial wealth gap, even more so now that we have emerged from the pandemic,” Mayor Eric Adams said in a statement. “The program Save for College can reduce the amount students and families have to borrow in student loans, combating the student debt crisis that has disproportionately affected students of color.”
A total of $6.5 million has been invested this year in 65,300 New York City scholarship accounts for students participating in the program NYC Kids RISE Save for College. This program is a public-private-community partnership designed to make college and career training more accessible to public school students, regardless of income or immigration status.
According to the city, research found that kids with a college savings account of just $1 to $500 are three times more likely to go to college and more than four times more likely to graduate.
With that in mind, this school year kicked off the program where kindergarteners enrolled in one of the city’s public schools, including participating charter schools, will automatically receive a scholarship account invested with $100 of NYC Kids RISE, unless their families decide not to participate in the program.
Families can activate their kindergarteners’ New York City scholarship accounts from the program Save for College.
“Today is a historic day — we are taking a big step toward making college and careers more accessible for our students,” New York City Department of Education Chancellor David C. Banks said in a statement. . “Money deposited into accounts today plants the seeds that will instill a sense of financial literacy and open doors for our youth for decades to come.”
what is the program Save for College?
The program NYC Kids RISE Save for College gives families, schools and communities a way to work together to save for their children’s future.
It is a scholarship and savings program designed to make college and career training more accessible and attainable for all New York City public school students, beginning in kindergarten, regardless of income or immigration status. of his family.
By providing up-front scholarships for every eligible student, tools and information for families to develop their own college and career savings plans, and a way for entire communities to invest in their children, the program Save for College allows everyone to work together to build assets and support expectations of educational and economic success for every child.
If eligible, the child will be automatically enrolled in the program Save for College, unless you decide not to participate. You do not have to do anything to sign up for a free NYC scholarship account. If you do not wish to participate, please visit the New York City Department of Education website for further instructions here.
What are the elements of the program?
- Provide a New York City scholarship account for each participating student: Unless their parents/guardians opt out, all kindergarten children enrolled in a New York City public school (including participating charter schools) automatically receive a New York City scholarship account with an initial investment of $100 by NYC Kids RISE y up to $200 in additional rewards. Scholarship funds are invested in the NY 529 Direct Plana type of tax-advantaged account specifically designed to help people save for higher education.
- Support families with tools and information to develop their own savings plan: After activating a child’s New York City scholarship account, a family can open and connect a college and career savings account they own for their child’s benefit. Then they can start saving money in ways and amounts that make sense for their financial circumstances.
- Support communities to work together to invest in their children’s New York City scholarship accounts: Businesses, organizations, institutions and others can contribute to New York City Scholarship Account pools to further increase the money in each child’s account and demonstrate their community’s support for each child’s success.
- Reinforce the expectation of attending college and career training: Major events, activities, and campaigns at schools and in neighborhoods help students dream big about what’s possible for their future.
- Teach financial education in the classroom: Students receive age-appropriate financial education beginning in kindergarten.
Who can participate?
All families with kindergarten students enrolled in a New York City public school (including participating charter schools) are eligible to participate in the Program. Save for College, regardless of your income or immigration status.
Because the program was piloted in Geographic School District 30 in Queens beginning in 2017, all families in kindergarten through fourth grade are eligible to participate from the 39 pilot schools in Geographic School District 30.
Where can I find more information?
Additional information and resources about the program Save for College they are available on the downloadable resources page here.
If your child is already enrolled in the program Save for Collegeclick here to learn more about the basic steps.
For more information, contact NYC Kids RISE.
You can also visit the New York City Department of Education here.
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