Beginning March 1, Missouri will become the 12th state to offer matching funds for college saving accounts, a concept made possible under MOST-Missouri’s 529 College Savings Plan.
The MOST 529 Matching Grant Program will begin to offer a dollar-for-dollar match on a qualifying account holder’s contributions of a maximum of $500 per year and $2,500 over a lifetime, Jon Galloway, director of communications and policy for Missouri state treasurer Clint Zweifel, said.
“The program is $125,000 each year for the next four years that is going to go to reward and incentivize families who make the commitment to save for college,” Galloway said.
In order to be eligible to receive matching grants, Missouri residents must first have a MOST 529 account. The account owner’s household adjusted gross income must be less than $75,000. The beneficiary of the account must be 13 years old or younger when the grant is approved, and he or she must reapply each year. All of the qualifications are outlined on the program’s website, www.most529grant.org.
Applications will be accepted March 1 through June 30 and can be completed online, Galloway said.
Applicants will be notified of their acceptance by August 31, and the matching funds will be applied to accounts Jan. 31, 2013.
The opportunity to receive matching funds was announced earlier this month as part of the MOST 529 Plan’s new management contract with Upromise Investments, according to a news release.
The MOST 529 Matching Grant Program uses privately funded money, meaning that the funds available are offered at no cost to the state or taxpayers, Galloway said. Any unused money at the end of a year will roll over to the following year, according to the press release.
“Research has shown that money saved for higher education, no matter the amount, incentivizes a child to seek a higher degree or advanced training,” Galloway said. “The MOST match recognizes that commitment that Missouri families make to save, and ultimately, that makes an impact on a kid’s life.”
The matching grants an account holder receives can be used toward paying for any approved institute of higher education or advanced training, including four- and two-year colleges, vocational schools and technical schools.
Galloway said the state treasurer is committed to higher education because of its tremendous impact on the economy.
“A more advanced, trained workforce is obviously going to pay dividends for our economy in the long run, and I think this (program) contributes to that,” Galloway said. “We’re very positive that $500,000 over four years can make a big impact.”
