Treasurer's grant to jump-start college savings plans

NWA Democrat-Gazette/SPENCER TIREY Delia Farmer (right), executive director of the Economic Opportunity Agency of Washington County, thanks state Treasurer Dennis Milligan (left) and other legislators in the room for the $30,000 Milligan's office gave the agency to seed Arkansas 529 Gift Plans.
NWA Democrat-Gazette/SPENCER TIREY Delia Farmer (right), executive director of the Economic Opportunity Agency of Washington County, thanks state Treasurer Dennis Milligan (left) and other legislators in the room for the $30,000 Milligan's office gave the agency to seed Arkansas 529 Gift Plans.

SPRINGDALE -- Young children served by the Economic Opportunity Agency of Washington County can get a jump on paying for college thanks to a grant from the state treasurer's office.

Treasurer Dennis Milligan held a news conference Wednesday to present agency officials a $30,000 check, money that will be used to seed Arkansas 529 Gift Plans for those enrolled in agency programs including Head Start, Early Head Start and Children's House.

Programs

The Economic Opportunity Agency of Washington County administers the following programs for children:

• Head Start provides infants and preschool children of low-income families with a comprehensive program to meet their emotional, social, nutritional and psychological needs.

• Children’s House provides therapy and long-term care to abused children up to 6 years old. It supports children through therapy, classes, meals and daily care in a safe and home-like environment.

Source: Economic Opportunity Agency of Washington County

Families signing up for a 529 Gift Plan through the agency will receive an initial gift of $100 for each child's account, said Delia Farmer, the agency's executive director.

Research shows that a child with a college savings account is six times more likely to attend college than a child without one, Farmer said.

"So today, we are planting seeds that college is possible," she said.

The 529 plan allows parents to save for their child's post-secondary education while receiving a tax deduction of up to $10,000 for married couples and up to $5,000 for individuals. It's administered by Milligan's office. There are 37,203 accounts in Arkansas, according to Stacy Peterson, Milligan's communications director.

The $30,000 grant isn't taxpayer money. A percentage of the money from plan contributors goes toward administering and marketing the plan, and a board determines how to spend that money, Milligan said.

Milligan said he believes in the importance of advancing one's education beyond high school. Money accumulated through a 529 account may be used to pay for a technical, undergraduate or graduate education program.

"It's my hope that every student in Arkansas has the opportunity to further their education regardless of their family's financial background," he said.

The Economic Opportunity Agency strives to help low-income families succeed economically and socially in Northwest Arkansas. The agency typically serves more than 300 children ages 6 weeks to 6 years old annually.

"A lot of our families don't realize that college is possible for their children, because of the situation they're living in," Farmer said.

The agency held informational sessions for parents about the 529 plan earlier this year. Thirty people have signed up for an account so far, but Farmer expects more to sign up once the agency's programs start up for the new school year.

A 529 account can be opened with as little as $25.

Milligan was elected state treasurer in 2014. He is running for re-election this year against Ashley Ewald, a Libertarian from Uniontown.

Ewald said the 529 plan sounds like a great program.

"I really can't criticize that at all. It's definitely something I would keep going," she said.

NW News on 07/26/2018

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