1 / 17

RHODE ISLAND HIGHER EDUCATION ASSISTANCE AUTHORITY

The Rhode Island Higher Education Assistance Authority offers the CollegeBoundfund, a state-sponsored college savings program, to help Rhode Island students save for their education. With a variety of investment options and tax benefits, the program aims to support students in pursuing higher education. Additionally, the authority administers grant programs and scholarships to further assist students in achieving their educational goals.

mares
Download Presentation

RHODE ISLAND HIGHER EDUCATION ASSISTANCE AUTHORITY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. RHODE ISLAND HIGHER EDUCATION ASSISTANCE AUTHORITY Assisting Rhode Island’s Students….. …..Investing in Rhode Island’s Future

  2. CollegeBoundfund • State-Sponsored College Savings Program (Section 529 IRS Code) • Six Core Allocation Portfolios • Customized Allocation Portfolios from among Nine Alliance Capital Mutual Funds

  3. CollegeBoundfundCharacteristics • $250 Minimum Initial Investment by Check or Money Order • No Minimum to Open Account through Automatic Investment Plan • $50.00/month Contribution by Check or Money Order • Federal and State Income Tax Free for Qualified Withdrawals • Legislation to Enhance Tax Benefits for RI Residents - Up to $1000/year tax deduction for contributions • Assets in Account not considered in determining eligibility for RI State Grant Program

  4. CollegeBoundfundas of 09/30/2003 • Total Accounts Opened - 392,225 • Rhode Island Accounts - 10, 844 • Out of State Accounts – 381,381 • Total Program Assets - $3,664,777,496 • Rhode Island Assets - $82,930,424 • Out of State Assets - $3,581,847,072 • Average Account Size - $9,343 • Average Rhode Island Account Size - $7,647 • Average Non RI Account Size - $9,391

  5. CollegeBoundfundProfits • Account Maintenance Fee • $25.00 per year for out of state participants with accounts less than $25,000 who do not make deposits through direct deposit or an Automated Clearing House (ACH). • $1,499,950 profit in 2001-02 • $3,434,202 profit in 2002-03

  6. CollegeBoundfundProfits • Direct Commission Fee • Out of state participant opening an account via the internet rather than through an advisor. Fee is equivalent of what participant would pay an advisor. • $735,842 profit in 2001-02 • $429,864 profit in 2002-03

  7. CollegeBoundfundProfits • Non-qualified Withdrawal • A $50.00 administrative fee is charged for non-qualified withdrawals. • $154,742 profit in 2001-02 • $496,688 profit in 2002-03

  8. RI State Grant ProgramCollegeBoundfund Contribution • 2001-02 - $ 263,708 • 2002-03 - $1,441,582 • 2003-04 - $3,000,000

  9. RI State Grant Program • Need-Based • $300 - $1400 Award Range • Fully Portable • Gift Aid • Undergraduate Study

  10. RI State Grant Program Activity

  11. Academic Promise ScholarshipCollegeBoundfund Contribution • Began with High School Graduating Class of 2002 • $1,000,000 per Cohort Class • 100 Students @ $2,500 per Year/4 Years

  12. CollegeBoundfundAcademic Promise Scholarship • Need and Merit Based • $2500 • Fully Portable • Gift Aid • Full Time Undergraduate Study

  13. Academic Promise ScholarshipSelection Formula ((4050 – EFC)/10) + ACT/SAT Score = Selection Index • Students Ranked by Index • Top 100 Students Designated Scholars

  14. Academic Promise ScholarshipGrade Point Average Requirement • First Year – 2.50 GPA • Second year – 2.75 GPA • Third Year – 3.0 GPA or • 3.0 Cumulative Average at the End of Any Qualifying Year

  15. 5 & 10 Matching Grant ProgramCollegeBoundfund Contribution • 2003 - $500,000 • 2004 - $500,000

  16. CollegeBoundfund5 & 10 Matching Grant Program • Match Contributions to CollegeBoundfund Account up to $500 • For Child 10 Years Old or Younger • $2 to $1 Match - Income At or Below 200% of Established Poverty Level Guidelines • $1 to $1 Match - Income Between 201% to 300% of Established Poverty Level Guidelines • Match for Each of the First 5 Years • Participant – RI Resident

  17. 5 & 10 Matching Grant ProgramActivity • 2003 • $53,304 Matching Grants • 80 Beneficiaries

More Related