12 newborns receive start-up college savings accounts
WINOOSKI >> Twelve babies born at Vermont hospitals on May 29 will each receive $100 in a 529 college savings account from Vermont Student Assistance Corp.
The Vermont Association of Hospitals and Health Systems partners with VSAC, which administers Vermont's 529 college savings plan, to help educate Vermont families about saving for college for their children.
University of Vermont Medical Center welcomed six babies while one baby was born at Central Vermont Medical Center, North Country Hospital, Northeastern Vermont Regional Hospital, Porter Medical Center, Rutland Regional Medical Center and Southwestern Vermont Medical Center.
Northeastern Vermont Regional Hospital also matched $100 to the college savings account for the baby born there.
Any family who has not yet filled out the paperwork to set up the account can contact Sabina Haskell at Haskell@vsac.org or by calling 802-542-2240.
A 529 plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996.
Research shows that children with college savings are three times more likely to attend college and four times more likely to graduate than children with no college savings. Also, parents of newborns can encourage family and friends to contribute to their child's VHEIP account through e-gifting. Family and friends can make significant contributions to a child's college savings account over time through birthday, holiday and graduation gifts. E-gifting makes it easy to contribute to a VHEIP account online and the valuable gift will last a lifetime.