Raimondo enhances college savings program

GOV.-ELECT Gina M. Raimondo has announced enhancements to the CollegeBoundbaby program, making it easier for parents to enroll their children at birth in the state's 529 college savings program.  / PBN FILE PHOTO/NATALJA KENT
GOV.-ELECT Gina M. Raimondo has announced enhancements to the CollegeBoundbaby program, making it easier for parents to enroll their children at birth in the state's 529 college savings program. / PBN FILE PHOTO/NATALJA KENT

PROVIDENCE – Gov.-elect Gina M. Raimondo has announced a change to the CollegeBoundbaby program to make it easier for parents to enroll their children as soon as they are born.

Raimondo, in partnership with the Rhode Island Higher Education Assistance Authority, said the changes will begin Jan. 1.

The universal children’s accounts will be offered at birth; $100 is provided at the onset. Parents will no longer need to set up the accounts later.

This initiative makes Rhode Island one of only three states in the nation to provide universal children’s savings accounts.

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Through the newly enhanced CollegeBoundbaby program, parents of newborns check “yes” on their in-hospital birth certificate worksheet to allow the Rhode Island Office of Vital Records to release the necessary contact information to RIHEAA to authorize the CollegeBoundbaby Grant for their child.

If a child is adopted by a Rhode Island resident, the adoptive parent may self-enroll their child within the first year of adoption.

“Rhode Island families are struggling, and so we are making it easier for them to save for their child’s college education,” Raimondo said in a statement. “To rebuild Rhode Island’s middle class, we have to improve access to higher education. This initiative will help level the playing field with a direct investment in every child’s future.”

CollegeBoundbaby is a program offered through CollegeBoundfund, the state’s 529 plan.

The $100 contribution will be held and invested by RIHEAA in a CollegeBoundfund master account on behalf of the child until the child is ready to attend a higher education institution – whether it is a college, or trade, technical or vocational school. The grant and any earnings can be withdrawn for the purpose of funding qualified higher education costs.

According to information from Raimondo, median earnings of college graduates are at a level that is nearly twice as high as that of workers with only a high school degree. People with a college degree are more likely to be employed than those without one, and more likely to be employed in a job that provides quality of health and retirement benefits.

The announcement about the program was held at Community College of Rhode Island.

To learn more about the enhanced CollegeBoundbaby program, contact RIHEAA at 736-1141, via email at collegeboundfund@riheaa.org or visit collegeboundbaby.com.

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