Building the Financial Bridge to College

California has the opportunity to make 529 accounts more attractive to low- and moderate-income families by providing a match for savings they put towards a college education.

California could opt to provide a 1-to-1 savings match up to $500 annually for families earning 200% or less of the federal poverty rate. This would deliver a tangible benefit for working families that cannot fully take advantage of the tax incentives given through 529 college savings plans and allow funds to only be allocated to those making an effort to save. Given some underlying assumptions, this initiative could cost between $7.5 to $15 million annually.

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