HomeMy WebLinkAbout529 College Savings Day 1;�JT F,''C;C)11 ..1,
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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their higher education needs with more than $379 million withdrawn by families in 2016 for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
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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
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Cali-for 'a S to Treasurer
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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