STATE TREASURER SHANE OSBORN RELEASES 6 MONTH PROGRESS REPORT

Part 1: Nebraska College Savings Program

“Currently, only 9-percent of Nebraska’s youth participate in our college savings accounts and it’s unlikely the other 91-percent can afford college out of pocket,” Osborn said. “But, I am extremely pleased with our progress so far with the Nebraska College Savings Program. We intend to help every family, regardless of income, have a simple and affordable way to plan for their child’s future.”

What it does:

The Nebraska College Savings Program is a qualified tuition program under Section 529 of the Internal Revenue Code and is sponsored by the state. There are four plans within the Nebraska Educational Savings Plan Trust – The College Savings Plan of Nebraska, The TD AMERITRADE 529 College Savings Plan, The AIM College Savings Plan, and The State Farm College Savings Plan.

Accomplishments:

• Worked with Gov. Dave Heineman and State Senator Tim Gay to get LB 338 signed into law which increases the Nebraska state income tax deduction for contributions to the plan from $1,000 to $5,000 per tax return. This should lead to an immediate boost for in-state contributions into the fund; currently, of the $1.8 billion in funds 75% comes from out-of-state contributions.
• The College Savings Plan of Nebraska has 704 more accounts open today than during this same time period last year.
• Program contributions are up by over $10.6 million today than during this same time period last year.
• Received national ranking by Morningstar Fund Reports as a “Top 3 Plan.”
• Received a stellar 4.5 out of 5 graduation caps rating for Nebraska residents from SavingForCollege.com.
• Re-branded the Nebraska College Savings Program and initiated an aggressive marketing strategy to encourage a new generation of families to start saving for higher education needs.