Greater Opportunities for Your Child
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 about 1% of your gross annual household income for 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 until you have a source of income.
A Better Option Than Traditional Borrowing
Providence Promise ensures that your child will only be responsible for an income-based monthly contribution, unlike traditional student loans, which require a fixed monthly payment regardless of income. After your child graduates from their higher education program, he or she will contribute about 7% of his or her gross annual household income to the program for 8 years, on average - Just like the family contributions, student contributions are always tied directly to income. Some students may never contribute back the amount of Gap Funding they used to pay for their higher education program.
Your child will have up to 10 years after high school graduation, in addition to any years of military or philanthropic service, to decide on continuing his or her education.
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 College Bound account. You may choose to keep the account open and continue to make contributions, transfer the account to another child, or withdraw your funds.