Right: Superintendent Yvonne Caamal Canul and Lansing Mayor Virg Bernero handing out piggy banks to help kick start savings for post secondary
education.
Courtesy photo
By Deborah M. Walker
Saving for college is a difficult task for many parents and students. A fluctuating economy, the rising costs of tuition rates, and a lack of resources, leave many students and their parents financially unable to handle this monetary burden. However, a new program implemented by the City of Lansing is set to change that.
“It was a program that was fashioned after the San Francisco K-to-C program, Kindergarten to College, and that program was started for kindergarten students in the San Francisco area, with the thoughts of students who have money to go to college would be more likely to go,” said Jayme King, Program Director for Lansing SAVE (Student Account Valuing Education).
King said research has shown students with college savings are 4 to 6 times more likely to go to college and graduate. This is good news for the Lansing School District who has been struggling with increased dropout rates and decreased retention stated King.
According to ballotpedia.org, the graduation rate for Lansing School District students is only 51.6 percent. The intention is the program will encourage students to continue their education beyond high school, while allowing parents to get and stay involved financially.
Kindergartners from 5 Lansing School District schools; Cumberland, Willow, Reo, Lyons and Riddle elementary, will have $5 deposited into their savings accounts. The money is donated by the Michigan State Federal Credit Union (MSFCU). The City of Lansing is the custodian on the account said King.
376 Kindergartners from the aforementioned schools will receive the money for the first year. After that more schools will be added to the list. To know who is eligible for the money, the City of Lansing receives a master list of all the Kindergartners in the schools.
“We’re rolling it out over a 4 year period just because of the sheer enrollment of the kindergarten population of the Lansing School District, and making it easier for the MSU Federal Credit Union to handle the number of accounts,” said King.
There is nothing students or parents must do to get the account. As long as the kindergartener is enrolled in the Lansing School District they are eligible. According to King, eventually there will be 100 percent participation from all Lansing School District. After the 4 year period there will be a look back over the students who did not receive funds during the previous enrollment year. Even though some may be in the 4th grade, they will still be given an account.
King said there will be more opportunities to add money to the kindergartner’s accounts.
“Part of my job is to look for other… contributions and donations through businesses and organizations here in the greater Lansing area as well as across the state. We’re also doing a push for private contributions from parents and students as well,” said King.
Discussions about a matching program is also in the works said King. This gives parents and students something to strive for; however, currently this program is not finalized.
“One of the things that we’re toying with is attendance. So if the kindergarten student achieves a 95 percent attendance in their marking period, they would have additional funding and funds placed in their account,” said King.
The money is used for post-secondary educational opportunities explained King. This includes lab fees, tuition, text books, lab supplies; anything a student may need to further their education. This gives the student a chance to focus on studying.
“This way it allows students not to be so focused on the financial aspects of attending institutions of higher learning, but really fulfilling their dreams and their goals of who they want to be in the future,” said King.
“As long as it is a qualified educational fee, these funds can be used. So they can substantiate any other scholarships or grants. It’s just additional funding, provided by the City of Lansing, to help bridge the gap with their finances…while they are attending post-secondary school.”
There are no income requirements for the program said King. Everyone is eligible for the money as long as they are enrolled in the Lansing School District. As well as automatic enrollment, no minimum or maximum contributions are required. As an added feature, the account is also interest-bearing.
“It can be as small as a contribution of a dollar…we don’t care. As long as there are certain behaviors showing that saving for college is a priority and that parents want to help their children along this pathway,” said King.
Since the City of Lansing is the custodian on the account the money is not taxed. Parents are listed on the account only as authorized signers said King. They are able to monitor account balances or activities and make deposits, however they are not the account holder and no withdraws can be made. This makes Lansing SAVE different from other programs explained King.
“Because the City of Lansing holds the accounts as the custodian, the only way withdraws can be made is through qualified hardships…and the funds that would be able to be withdrawn can only be through private contribution,” said King.
Any funds deposited by organizations through fund raising efforts would not be eligible for withdraw said King. This ensures the funds are held for educational purposes.
Lansing SAVE is geared at kindergarten students only. For parents of older students there are still opportunities to save for college said King. There is a partnership in place with the State Treasury Department. Students are offered the Michigan Educational Savings Program, or the Michigan Educational Trust.
There is also the HOPE scholarship, which is offered to Lansing School District students after their 6th grade year.
“We found with research that the earlier that you start talking to students about their future plans , who they want to be… gives you more leverage for them to seek out those opportunities as they’re going through their school age years,” said King.
If the program ends or is not successful, any funds contributed through private contributions will be refunded. However, parents are allowed to keep the account open if they chose. Any contributions such as business donations, will be returned to their source explained King.
According to King, money generated through Lansing SAVE, will not interfere with any other scholarships or grants and is a partnership with those programs.
Lansing SAVE has no end date stated King. The hope is that support will continue and influence other schools to follow as well as take in donations.
“We want this program to become a main stay in the fabric of the City of Lansing and the Lansing School District.”
“This program is so worthwhile, not just for our students but to really positively influence the parents of the students, the city and our state. We understand how important education is in today’s society and moving forward through the 21st century,” said King.
To find out more about Lansing SAVE or to donate contact Jayme King at jayme.king@lansingmi.gov.
This was printed in the July 12, 2015 – July 25, 2015 edition
