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
Beacon Poll: July 2024 Results
Today, we released our next installment of the Beacon Poll, a statewide survey of 1,200 registered Tennessee voters comprised of questions a...
Instant Reaction to Chevron Decision
Today’s Supreme Court decision overturns Chevron and returns the task of interpreting laws to the courts. That’s a great thing for liberty.
The ESSER Fiscal Cliff: Expiring Federal Relief for Schools and Potential Tax Increases
In the coming months, county commissioners will be taking up school board budgets. These discussions and votes are an annual occurrence, tho...
Net Neutrality: A Costly Solution in Search of a Problem
Regulators should match their rules with reality and in the case of Net Neutrality, that’s clearly not happening.
It’s Time for Tennessee: Double-Digit States Offer Universal Education Freedom
With dozens of states providing choice programs and a growing number providing the same options to all students, Tennessee policymakers must...
Red Light, Yellow Light, Green Light: A “Choose How You Move” Breakdown
What to make of Nashville's new transit plan? We’ve got you covered.
Beacon Files Supreme Court Brief to Defend Equality Under the Law
Many Tennesseans benefitted from fresh starts in education and enterprise. Many more would also benefit if the government stopped discrimina...
Music City: No Home for Music—An Excerpt from “Modern Davids”
Due to their grassroots activism, Lij and Pat convinced the city council to soften the home business ban.
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.