Earlier this year, the Federal Reserve Bank of New York reported that college graduates stand to earn more than those with just a high school diploma, with returns to the investment of earning a degree at approximately 15 percent. This should have prospective students packing their bags – at least until they are reminded of the staggering total college loan debt figure of $1.1 trillion across the country. Four-year degrees can cost upwards of $60,000 per year, and the U.S. Department of Education says “the average borrower now graduates with nearly $30,000 in debt.” Getting a job to help pay for college and living in mom and dad’s basement start to sound like pretty good ideas. However, thanks to education savings accounts – a program growing across the country – prospective college students don’t have to be limited by debt. Florida is the latest state to implement the program. On July 18 this year, Florida families of children with special needs began signing up for Personal Learning Scholarship Accounts. The accounts let families start saving for college years in advance. Families use the public money deposited into the accounts to pay for educational expenses like educational therapy, online classes, and private school tuition. For students determined to go to college, parents can use the accounts for prepaid college tuition plans. Nearly 1 in 5 Arizona public school students is eligible to open an education savings account that works much like Florida’s. However, Arizona’s accounts also allow students to save any money left in the accounts after high school for up to four years, even if a student does not go to college immediately. This feature gives families the flexibility to deposit a portion of education savings account money into a college savings plan each year as their child moves through K-12. Some students may choose to get ahead and use the accounts to pay for college classes while in high school, giving them a leg up on the admissions process. Others may wait and save the funds until they are ready to pursue a college degree. Education savings accounts can help families with college tuition before debt becomes a problem, and the accounts give the next generation of students more choices than “life in debt” or “life in my parents’ basement.” -Jonathan Butcher
KEEP IN TOUCH WITH US
LATEST POSTS
Tennessee: The Asterisk State—An Excerpt from “Modern Davids”
On the final day of the 2016 legislative session, lawmakers voted to repeal the Hall Tax. Jon and Linda remain engaged in Beacon’s work to t...
From Colour to Color and from Blockchain to Staking: How Definitions Pave the Way
Just as Noah Webster paved the way for a new language, Tennessee lawmakers today have the opportunity to make our state a hub for new jobs,...
Fighting Back Against Trademark Theft: The Roberto Clemente Family v. Puerto Rico
Puerto Rico has appropriated Roberto Clemente’s trademark against his family’s wishes, and at the expense of his and his family’s reputation...
Fighting for Freelance Freedom: Littman v. Department of Labor
With its bustling music industry, Nashville is home to many freelancers and independent contractors. Many of these individuals choose to be...
Healthy Competition: An Excerpt from “Modern Davids”
CON reform will directly benefit Asher and other Tennesseans like her who suffer from a lack of quality healthcare options. It’s a powerful...
Why Conservatives Should Support Zoning Reform
Typically, proposed laws at the local level rarely get any attention, let alone make national news. But here in Tennessee, we’re anything bu...
A Dose of Free Market Medicine: Expanding Access to Healthcare Through Pharmacists
Beacon’s newest report, “A Dose of Free Market Medicine” compares Tennessee’s laws and regulations around pharmacists and compares it to rec...
An Interview with Coi Morefield
Education “is meant for service. It’s not a political thing. We are here to serve the children.”
KEEP IN TOUCH WITH US
WANT TO DO A STORY ABOUT SOMETHING YOU SEE HERE?
CONTACT US AT:
mark@beacontn.org
(O) 615-383-6431
WHO ARE WE?
The Beacon Center of Tennessee empowers Tennesseans to reclaim and protect their freedoms, so that they can freely pursue their version of the American Dream.