College Savings on the Rise in Delaware

More accounts and $36,100 in incentives added in first half of 2023

Almost twice as many people as last year have started saving for higher education with DE529 Education Savings Accounts according to State Treasurer Colleen Davis. More than 1,400 new DE529 accounts opened through June of 2023, a number 41% higher than during the same time last year.

“As the cost of college and trade school continues to rise, it has become more crucial than ever for families to plan for their children’s future,” said Treasurer Davis. “Our office is proud to sponsor the DE529 Education Savings Plan, which provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.”

Managed by Fidelity Investments, money in a DE529 account grows on a tax deferred basis, and withdrawals for qualified expenses like tuition, fees, and books are federal and Delaware income tax-free.

In addition to making the plan available, the Office of the State Treasurer (OST) and the Plans Management Board, the group that directs and serves as trustees of the money invested in the plans, credit the First State, First Steps incentive program with boosting enrollment.

“Through the first half of the year, 361 new DE529 accounts qualified for the First State, First Steps incentive which makes a $100 contribution to eligible accounts,” Davis said. “If the beneficiary is five years of age or younger and a Delaware resident at the time of account opening, the DE529 plan will add the contribution to every new account opened with an initial deposit of at least $100.

To help spread the word about DE529 and the benefits of saving for higher education, Fidelity recently sponsored Kids’ Day at the Delaware State Fair. DE529 is also the proud sponsor of “Kids Run the Bases” after every Sunday afternoon home game of the Wilmington Blue Rocks, and serves as the exclusive sponsor of the Route 1 Rivalry between the University of Delaware and Delaware State University.

For more information on the DE529 Education Savings Plan and the First State, First Steps program, visit 529.delaware.gov.


Give the Gift of Education This Year

A gift to a DE529 account will last well past the holiday season

The holiday season can be stressful as shoppers search for the perfect present. Opening a DE529 Education Savings Plan account or contributing to an already existing account lets you not only cross a gift off of your list but provide for the future as well.

“There’s no getting caught up in the frenzy of shopping malls and you won’t have to deal with supply chain issues when you give the gift of investing in a loved one’s future,” said Delaware State Treasurer Colleen Davis. “Saving for college never goes out of style like trendy fashion, so why not save instead of spending?”

According to the College Savings Plans Network, over $412 billion are being set aside all over the country for education expenses. In Delaware, $40.6 million were held in DE529 accounts as of the end of the third quarter of 2022.

The DE529 Education Savings Plan makes it easy and affordable to plan ahead for the cost of higher education at colleges & universities, technical & community colleges, trade schools, and many other post-secondary education programs. Sponsored by the State of Delaware and managed by Fidelity Investments, DE529 provides tax-advantaged accounts designed to help parents, grandparents and others pay for higher education expenses.

“You won’t pay any taxes on your money as it grows,” said Treasurer Davis, “plus, withdrawals for qualified higher education expenses like tuition, fees, and books are federal and Delaware income tax-free.”

Opening a new DE529 account for a child under the age of five makes your gift even bigger this year. “First State, First Steps” is an incentive program providing a $100 contribution to a DE529 Education Savings Plan account as long as the beneficiary is a Delaware resident, and the initial investment in the account is at least $100.

To learn more, visit 529.delaware.gov before making your holiday shopping list.


Former Foster Youth Get Help to Further Education

Aspire529 provides money and financial training

State Treasurer Colleen Davis has announced the distribution of the inaugural Aspire529 awards. Aspire 529 provides $529 for foster youth aging out of the system to use for expenses related to continuing their education.

“Aging out of foster care presents many obstacles for young adults, with financial concerns often topping the list,” said Treasurer Davis. “Aspire529 will help them break through some of those barriers.”

This year’s eight award winners, four from New Castle County, three from Kent County, and one from Sussex County said they would put the money toward the cost of tuition, books, transportation, supplies, and child care.

In addition to the money, winners also received education on how to handle it. Each recipient was required to complete two personal financial coaching sessions from trained, skilled professionals at $tand By Me®.

“Having money to spend is just half of the equation,” Treasurer Davis said, “the other part is knowing the best way to manage it. Our office, along with the Plans Management Board, which endorsed the program, wanted to make sure Aspire529 wasn’t merely a handout, but included the knowledge and skills to build responsible financial behavior.”

The collaborative effort that went into the creation and implementation of the Aspire529 program shows how Delaware can rally together to help those who need it most.

“Positive outcomes for young adults are achieved through collaboration with community partners, affordable education, and development of self-sufficiency skills,” said Sophia Elliott,
Transitional & Independent Living Program Manager with the Division of Family Services. “The Department of Services for Children, Youth, and Their Families is happy to partner with Treasurer Davis to pave the way for bright futures for youth who have experienced foster care in Delaware.”

“Kind to Kids Foundation believes that every child deserves a bright future,” said President and founder Caroline Jones. “While we provide education, advocacy, and guidance to children in foster care, we are thrilled to know the State Treasurer is helping these children we assist today have a brighter tomorrow.”

“The Aspire529 program is great for our youth who experience financial barriers that may cause issues or disruption with continuing their education,” said Aisha Stanford, Life Line’s Program Manager at West End Neighborhood House Inc., “both the money and the guidance will be integral parts of their financial future.”

More information can be found at de.gov/aspire529. Questions about the program can be sent to Treasury_Aspire529@delaware.gov


Treasurer Davis Named to National Board to Help Families Save for Education

The College Savings Plans Network (CSPN) has nominated and confirmed Delaware State Treasurer Colleen Davis to its Executive Board. An affiliate of the National Association of State Treasurers (NAST), the CSPN brings together state officials who administer 529 savings plans which offer federal and state tax benefits for people to save for a child’s education. The group offers convenient tools and objective, unbiased information to help families make informed decisions about education savings.

“The cost of a quality education can take a major toll on families and that’s why I’m honored to be part of a group that can truly help,” said Treasurer Davis. “Our goal is to create awareness, understanding, and use of 529 plans to empower families to save for education.”

Chaired by Illinois State Treasurer Michael Frerichs, the CSPN’s strategic priorities include increasing public awareness of the value of saving through 529 plans, preserving and enhancing tax advantages for saving, and advocating for federal regulatory requirements to maintain and improve access and appeal of 529 plans.

“Since her election in 2018, Treasurer Davis has been committed to reducing the burden of student debt through college savings,” said CSPN Chair Michael Frerichs. “We are thrilled to have her join the CSPN Executive Board as we continue working to expand awareness and help more families save through 529 college savings plans.”

Under Treasurer Davis, the Office of the State Treasurer administers Delaware’s College Investment Plan, DE529. The Plan provides tax-advantaged accounts designed to help parents, grandparents and others pay for education expenses, reducing the possibility of debt.

“Delawareans don’t pay any taxes on money as it grows in a DE529 account, plus withdrawals for qualified education expenses like tuition, fees, and books are federal and Delaware income tax-free, and many are reaping its benefits,” Davis said. “As of the third quarter of 2020, the number of new DE529 accounts increased 21% over the previous year, with total assets jumping by $21-million.”

In addition to almost all accredited colleges and universities nationwide, funds from DE529 accounts can be used at many vocational or technical schools, K-12 programs, and eligible foreign institutions. There is also no minimum investment.