ScholarShare 529 College Savings Plan

Children’s Savings Accounts Platform

Choose the right partner for your CSA program

Nationwide, about 86% of all Children’s Savings Accounts are built on a 529 platform, and this percentage continues to grow.* Find out about the advantages a ScholarShare 529 Platform Partnership can bring to your program. From our technology, to our investment options, and our social commitment, we can help you make a difference.

1. 529 PLANS — THE PLATFORM STRUCTURE OF CHOICE

The Center on Assets, Education and Inclusion at the University of Michigan School of Social Work, has long been a hub of thought leadership on Children’s Savings Accounts (also known as Child Development Accounts or CDAs).

Here are some of their findings:

“At present, 529 college savings plans are the CDA policy structure of choice at scale. Though imperfect, 529s provide all of the core financial characteristics: investment growth potential, targeted investment options, and withdrawal restrictions…. In short, no existing financial platform other than 529 plans provides a comparable combination of features required for CDAs.”

Policy Brief 18008 Taking Child Development Accounts to Scale: Ten Key Policy Design Elements:


“In this brief, we describe several features of direct-sold 529s that make these plans especially well suited to CDAs. Some of these features distinguish 529 plans from credit union or bank savings accounts. Families need low-cost checking or savings accounts to pay bills, conduct routine financial transactions, and accumulate short-term savings. However, bank accounts are not the best option to accumulate assets for long-term goals. Long-term in nature, CDAs should have the potential for investment growth, restrictions on use, and other characteristics.”

Policy brief 15-07 College Savings Plans: A Platform for Inclusive and Progressive Child Development Accounts:


“The 10 design elements identified in this policy report highlight the value of partnerships between CDAs and state 529 plans.”

Policy brief 17-30 Statewide Child Development Account Policies: Key Design Elements


Read More
Access the complete reports and other findings from The Center For Social Development, Brown School Of Social Work, Washington University In St. Louis

2. LEADING-EDGE TECHNOLOGY

Powered by VistaShare Outcome Tracker, ScholarShare 529 delivers functionality and flexibility that matter.... Keep track of your progress, reach out to your community, share your results and more:

  • Import child data from your school system or other source
  • Apply incentives to select children
  • Interact with parents/guardians online
  • Report on savings results
  • Omnibus Accounts for one or more cohorts of children
  • Seamless integration with ScholarShare 529 accounts

Since 2010, Children's Savings Account Programs across the nation have relied on VistaShare Outcome Tracker.

3. THE GROWTH POTENTIAL YOUR CSA NEEDS

The amount of money you award in grants is important. But what is even more important is how much those grants are worth by the time the student is ready to enroll in college.


Understanding Growth Potential
A dollar deposited into a savings account might be worth only $1.02 in 18 years. If it were held in 5-year CDs it might be worth only $1.24. A dollar invested in a ScholarShare 529 plan could be worth $3.38 (based on a 7% APR). That is a dramatic difference.

Why It Matters
Over the past 18 years the cost of a degree at a 4-year public college has nearly tripled1, and the cost of college continues to go up every year. Unless your grants are invested wisely at the time of their award, their purchasing power will simply erode over time.

Potential For Growth
At ScholarShare 529 we believe your grantees deserve to have their assets work hard for them. We manage over $9 billion in college savings for California families. We work with teams of professionals, many of whose only job is managing college investments. And all investment decisions are overseen by the independent ScholarShare Investment Board, an agency of the state of California, and chaired by the State Treasurer.

1. College Board, Trends in College Pricing 2018

4. AN EASY WAY FOR YOUR FAMILIES TO ADD TO THEIR SAVINGS

All the Benefits of an Individual ScholarShare 529 Account

  • Reduces your administrative burden
  • Easy for your families to set up – takes just 15 minutes
  • They can start with as little as $25
  • Families retain ownership of the money they contribute
  • Withdrawal restrictions discourage use for other purposes
  • Extensive customer support and education program
  • Most favorable financial-aid treatment of any savings1
  • Tax-free growth potential2
  • Can be used at colleges, trade school, and other eligible educational institutions across the US and even some internationally
  • E-gifting allows family and friends to contribute

1. The treatment of investments in a 529 savings plan varies by school. Assets are typically treated as the account holder’s and not the student’s. (Student assets are generally assessed at 20% whereas parental assets are generally assessed at 5.6%.) Any investments, including those in 529 accounts, may affect the student’s eligibility to get financial aid based on need. You should check with the schools you are considering regarding this issue. 2. When used for qualified higher education expenses

5. AN EXPERIENCED PARTNER
One of the Leading College Savings Providers in The Country
Over nearly 20 years, ScholarShare 529 has disbursed more than $3 billion to fund higher education.

Offered by the ScholarShare Investment Board
Fiona

“Children’s Savings Accounts can open the door to a college education and world of possibilities for children. That’s why I am so pleased our ScholarShare 529 team is working effectively to make this program a success.” – Fiona Ma, CPA, State Treasurer, Chair


Managed by TIAA
TIAA

Founded more than 100 years ago by one of history’s great philanthropists, Andrew Carnegie, TIAA is grounded by our core values, committed to responsible investing and dedicated to being a force for good.


  • $1 Trillion in assets under management1
  • Over 5 million individual customers
  • Recognized as one of the World’s Most Ethical Companies for 2019 by Ethesephere2
  • 100% rating on the Human Rights Campaign’s Corporate Equality Index3
  • One of DiversityInc’s Top 50 Companies for the sixth year in a row

1. March 31, 2019, assets under management across Nuveen Investments affiliates and TIAA investment management teams are $1.026 trillion. 2. 2015-2019. The World’s Most Ethical Company assessment is based upon the Ethisphere Institute’s Ethics Quotient® (EQ) framework which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized way. The information collected provides a comprehensive sampling of definitive criteria of core competencies, rather than all aspects of corporate governance, risk, sustainability, compliance and ethics. Scores are generated in five key categories: ethics and compliance program (35%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%) and leadership, innovation and reputation (10%) and provided to all companies who participate in the process. The full list of the 2019 World’s Most Ethical Companies can be found at https://www.worldsmostethicalcompanies.com/honorees/ 3. Based on the Human Rights Campaign Foundation’s Corporate Equality Index 2017.

SPEAK WITH ONE OF OUR CSA SPECIALISTS

We are here to help:

Call: 916.651.6380

“I’m a success today because I had a friend who believed in me and I didn’t have the heart to let him down.” – Abraham Lincoln


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