Presented at the 2013 NPEA conference by: uAspire, Families United in Educational Leadership, Massachusetts Educational Financing Authority http://www.educational-access.org/npea_conference_workshops_2013.php

1. Saving for College: A Critical Step
Toward College Affordability

2. Agenda
• College Savings Landscape and Current Research
• Our college savings work
• What have we done as individual organizations?
• Our collaboration
• What has collaborating allowed us to do?
• Best practices
• Q&A

3. College Savings Landscape
• GAO Report
• A small percentage of families save in 529 plans
• Savers have median income 3 times that of non savers
• Most families saving in 529 plans have gone to college
• Factors that can affect saving are lack of resources, lack of awareness about 529
plans, and people have trouble selecting one
• Financial aid/Paying for college/Enrollment factors/Debt
• How America Saves for College (2013) Sallie Mae Study
• Anticipated savings don’t match actual savings nor meet with reality of college
costs
• Saving tied to life “triggers” – birth, start of school
• Not saving for college is more common in low income families
• Fidelity CSI Study
• Families now not expecting to cover all college costs
• Parents overestimate starting salaries of their students

4. College Savings Landscape
• Participation in states’ college savings plans has increased rapidly.
• There is much room for growth.

5. Research that Motivates
• “Youth who expect to graduate from a four-year
college and have a (college savings) account are
about 7 times more likely to attend college than
youth who expect to go to college but do not have
an account.” Elliot, W. and Beverly, S. (2011)
• While assets are positively related to college attendance, completion, and success, account
ownership alone seems to be a very large predictor of success.
• Behaviorally there is evidence that saving for college may focus attention of parents and
children on postsecondary education affecting outlook, orientations, course selection, and
discipline.

6. About MEFA
• MEFA is a not-for-profit state authority that works
to make higher education more accessible and affordable
through community education programs, college savings
plans and low-cost financing options.
• Created the U.Fund® and the U.Plan® college savings
plans and has offered affordable and fixed interest rates
college loans for 30 years.
• MEFA has assisted hundreds of thousands of families to
finance a college education.

7. MEFA’s College Savings Programs
• It’s never too early to start
saving for college and MEFA
offers guidance, a wealth of
resources and two college
savings plans, the U.Fund®
and the U.Plan®, to help
make paying for college a
possibility for families

8. The Early Years: Outreach Initiatives
• MEFA reaches families of
young children in a number of
ways to emphasize the
importance of saving for
college early. Mayor Menino at a
Start U Reading Event
› Start U.Reading
› Art Competition
› Dreams Tour
› Museums and Road Races

9. Our Work: FUEL
Families United in Educational Leadership
• Boston – based private nonprofit
• College planning and saving program for parents
• Reach parents through collaborations with community organizations
• Boston, Chelsea, and Lynn

10. Our Work: uAspire’s Mission & Vision
uAspire works to ensure that all young people have the
financial information and resources necessary to
find an affordable path to – and through – a
postsecondary education
College cost is a barrier that every college-ready young
person from a low and moderate income family must
overcome.

11. Our Work: uAspire Program Model
SUCCEED College
Support students throughout their
postsecondary career, helping them
reach their goal of college graduation
AFFORD
Guide students through the
financial aid process, securing 12th
financial aid and enabling Grade
good decision-making
PREPARE
7th-11th Fight the misperceptions
Grade of college costs that
derail students early in
their high school careers

12. Our Work: CompassIDA PROGRAM
COMPASS Working Capital
Asset Purchases to Date
Homeownership
Home Repair
5%5% 26%
58% Post-secondary Education for
2%
Self
4% Post-secondary Education for
Child
Roth IRA
Saving for college is one of top Small Business
two savings goals for families.

13. Collaborative Work:
Compass, MEFA & FUEL

14. Collaborative Work: MEFA & uAspire
EARLY COLLEGE PLANNING INITIATIVE (ECPI)*
 U.S. Department of Education College Savings Research Project (3 year study)
 Working with parents of low and moderate income 8th and 9th graders within the
Boston Public Schools
 Core question: How can we support families to prepare for college financing
earlier?
Provide
Provide general info
Provide AND
general info
general introduce
AND
college the 529
introduce
planning plan AND
the 529
info? provide the
plan?
$50
uAspire uAspire+MEFA uAspire+MEFA
*Project funded through grants from the United States Department of Education and the Bill and Melinda Gates Foundation

15. Best Practices
• Early messaging to students and families
• Integrate savings into current access/success
programming
• Collaborate: partner with your state’s 529 provider
• Make savings automatic and provide incentives
• Optimize other savings opportunities
• Walk through process step-by-step
• Simplify the overall process
• Build trust and strong relationships with families
• Provide ongoing coaching support

16. Best Practices: Early messaging
• Age level: elementary and middle school audiences
• Content: combine savings information for parents with
college cost information
• Sticker price
• Scholarship information
• Benefits: early messaging allows you to break down
myths and misconceptions early

17. Best Practices: Integrate savings
• uAspire program model evolution
• Where and when we integrate savings

18. Best Practices: Collaborate
• Partner with your state’s 529 provider
• States have generally structured the investment options to benefit participants
from all economic backgrounds within their state.
• Low contributions
• Less risky investments
• Inclusive marketing strategies-zoos, museums, libraries
• Convenient enrollment procedures and contribution options-payroll deduction,
electronic fund transfers, and online contributions and enrollment.
• Use research to make policy changes
• 35 states offer tax benefits (deduction or credit)*
• 12 states offer matching grants
• 16 states give 529 assets special treatment for state financial aid funds
• Widespread agreement about the importance of financial education about 529 plans
and about college savings in general as it relates to receiving financial aid and paying
for college.
*5 states have tax benefits that cross all states (parity)

19. Best Practices: Make Savings “Automatic” & Use Incentives
Q: Which aspect of the workshop had the biggest impact on your
decision to open an account? (Choose one)
100%
Presentations from MEFA and
Fidelity
80%
$100 incentive
Percent of Respondents
60%
Open an account at the workshop
40%
20%
Sign up with direct deposit
0%
Workshop Attendees
Source: Inspire Compass Working Capital Survey, n=31
19

20. Best Practices: Optimize Other Resources
Individual Development Account (IDA) programs -
matched savings accounts for working, low-income families
(www.idanetwork.org)
Family Self-Sufficiency Programs – an employment
and savings program for families in Section 8 or public
housing.
Tax-Time – encourage families to save part of their
Earned Income Tax Credit (EITC)

21. Best Practices: Walk through paperwork
• Example - FUEL formats application for uploading personal information,
and adds helpful hints

22. Walk Through Paperwork, continued
• A peek at a FUEL enrollment presentation…
• Review & Correct your information
• Participant (Account Owner) is YOU
• Beneficiary is the STUDENT
• Fill in SSN’s
• SIGN! section 8
• Meet FUEL staff to review and open your account individually.

23. Best Practices: Provide Ongoing Support
Regardless of how you promote saving for college, if you are successful and
parents begin saving, you can encourage them to keep it going through
financial coaching strategies.
• Fielding questions, referring to the appropriate agency
• Navigating account statements
• Workshops
• Strategies
• Vocabulary
Rosa and Kassandra
• Using funds
• Applying for financial aid

24. Question & Answer
For more information:
• Julie Shields-Rutyna MEFA jshields-rutyna@mefa.org
• Sherry Riva Compass Working Capital sherry@compassworkingcapital.org
• Michelle Murphy FUEL m.murphy@fuelaccounts.org
• Claire Dennison uAspire claired@uaspireusa.org