New York State Adopts New Law Making it Easier for Students to Raise Money in State-Sponsored College Savings Accounts

June 12, 2008

There has been an ease of the restrictions to the New York State College Choice Tuition Savings Program, in which the program will now allow relatives, friends, employers, and others to contribute to a state-sponsored college savings account for college bound students. This will let program participants accrue more money in their college savings accounts because others can help financially, giving students and families more opportunities to meet college expenses upfront. The New York State Legislature passed this bill, A.8985A/S.6776, and Governor Paterson signed the legislation into law on May 21, 2008.

“As the end of the school year approaches, high school seniors are looking ahead to graduation, and what lies ahead for them. Most are getting ready to start their first year of college at the end of the summer. This is also the time that families with younger children need to start looking at colleges, and how they will afford college tuition for their children.” Assemblywoman Sandy Galef said. “With this new law it will now be easier for families to afford college tuition for their children through state-based college saving accounts, lessening the burden on families and college bound students in our community.”

With the rising cost of a college education, this is a great way to boost a participant’s college savings account. Also known as a 529 account, up until now only the person or persons who opened the account were eligible to add to the college fund. Through the passage of this new law, any interested party can help a college-bound student with their college tuition and know that the money they are giving is going toward a safe place.

Secondary education has become vital for students to further their careers and to open as many doors as possible to them. Yet with education costs rising, we need to ensure these students receive every opportunity to save as much as possible before leaving for college, with the hope that after college they face fewer loans to pay off.

Galef concluded, “I understand that during this time of economic difficulties and uncertainties, it is vital to do everything possible to help our children save for college. It is my hope that everyone in the community takes advantage of this expansion to the program and helps our youth with the opportunity to gain a college education.”