Greater Opportunities for Your Child
Low and moderate income children with even $500 or less in a college savings account are three times more likely to attend college and four times more likely to graduate from college than those who do not. When your child graduates from a higher education program, he or she will have a greater chance of entering into a successful, fulfilling, well-paying career - 99% of all jobs created since 2009 have gone to college graduates.
Family Contributions Based on Income
Your contributions will be deposited into your personal CollegeBound Saver 529 account, which is the 529 plan sponsored by the State of Rhode Island. You will contribute an average of 1% of your gross annual household income for up to 15 years for each of your enrolled children. Your contributions are tied directly to your income. If your income goes down, your contributions go down, and if you become unemployed and have no income, your monthly contribution will be reduced to $5 per enrolled child until you have a source of income.
Reducing the Financial Burden of Higher Education
Providence Promise will work with you and your child to identify the higher education choices that best fit the needs and goals of your child, and to assure that all financial aid accessible to your child is secured. In addition, it is Providence Promise’s goal to have sufficient resources to fund the gap between the cost of your child’s selected higher education program and financial aid. These resources have not been secured at this time and there is no certainty that they will be. However, if the resources are secured and provided to your child, then your child will have a responsibility to contribute back to the program based on his or her income.
If you decide to withdraw from the program at any time prior to your child continuing their higher education, or if your child decides not to pursue higher education for any reason, your contributions will remain in your 529 CollegeBound Saver account. You may choose to keep the account open and continue to make contributions, transfer the account to another child, or withdraw your funds.