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HomeMy WebLinkAbout529 College Savings Day 1;�JT F,''C;C)11 ..1, f� MAY 15 ,2017 JOHN CHIANG TREASURER. S°C'AXI:1 OF CAI.IF(?RNIA May 12, 2017 Butte County Board of Supervisors 25 County Center Dr.. Oroville, CA 95965 RE, 529 College Savings lay Dear Butte County Supervisors: As the Chair of the ScholarShare Investment Board, l write to respectfully seep your assistance in raising awareness among your employees and the families that reside in your county/cite about the importance of saving for college and the significant rale that 529 college savings plans can play in that process. Over the past 40 years, college tuition rates have been consistently inoreasimg at two to three times the rate of inflation each year. During this same period of time, financial aid funding in general has shifted away from .student grants towards guaranteed student loans. "lroday, seven out of 10 college seniors graduate owing 530,100 on average in student loan debt. When Californians are burdened with student loan debt at levels such as these, they are hindered in their ability to purchase homes, cars, and other products that help boost our economy. Yet, it is estimated that only 37% of families saving for college in the ignited States are using a 529 college savings plan. ScholarShare, which serves as California's official state-sponsored 529 college savings plan, provides families with a valuable tool that offers a diverse set of low-cost investment. options,tax-deferred growth, and withdrawals free from state and federal taxes when used for qualified higher education expenses, such as tuition and frees, boobs, certain room and board costs, computer equipment, and other required supplies. Since its launch in 1999, ScholarShare has g=rown to more than 282,000 accounts with over$7.03 billion in total plan assets. More importantly, ScholarShare has helped families meet their higher education needs with more than $379 million withdrawn by families in 2016 for qualified higher education expenses. 915 Mall,Room 110,Sacramento,Cii 95814 (916)653-2995 0 F'tmx:(916)653-3125 34)O S.SI)6ii Sti-cet,`tiitc 1{54)(1,I.tas,k.igeles,C A 9001 3 o (213)t2lg_4467 o Fav(2P)620-6309 WmV.trettsurenc i.gOV Butte County Supervisors May 12, 2017 Page 2 To promote College Savings Day and encourage a greater number of California families to start saving for college now, ScholarShare will be offering a $50 contribution to families that open a new ScholarShare account on May 24-26. Eligible individuals must open the account with a minimum $50 initial deposit and make automatic monthly contributions at the minimum amount of$25 for at least six consecutive months. If you are interested in helping promote College Savings Day, my office would be happy to provide your staff with promotional materials, such as flyers, brochures, sample articles for e-newsletters, and a link to the ScholarShare website. In addition, we welcome the opportunity to co-sponsor an event, such as a town hall or workshop, in your respective districts at any time throughout the year to promote saving for college. By promoting; College Savings Day this May, you will undoubtedly help more California families become aware of the importance of saving for future higher education expenses and utilizing 529 college savings plans, such as ScholarShare, to reduce the amount of money their loved ones borrow while pursuing their academic goals. We look forward to the opportunity to partner with you on this important matter. Sincerely, /��10�HN CT A I ' 7 Cali-for 'a S to Treasurer I ,r r _.r,rrr...�,�...., iii �i ✓/,,,,r; ,....� :.:............o, ,.,., r i,;.r,=r r> > -," rr.".,, ; ,.1..... ,.,, „-�;,n ..�.,., r.., n u r ,u I N , rV � I i I �I I I. li pp I I ul'il i N o. I � V. m W( r °�luuuuull�ll II uV uuutllVuu ull uuuu7Vul uuIIIIIVuuI I II u °I II IIIVuI 1 !I�/III uuuu ul � J I I / rr I I I� , � l � •' i ® 1 i UTIAA To learn more about Scholar5hare's College Savings Plan,its investment objectives,tax benefits,risks,and costs please see the Disclosure Booklet at ScholarShare.com.Read it carefully,. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances.Visit ScholarShare.com/529day for terms and conditions.Promotion ends 5/26/17..Sponsored by the California 529 College Savings Plan. TIAA-CREF Individual&Institutional Services,LLC,member FINRA,distributor and underwriter. 136592 17SCH038.01_041217