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.

After a successful launch in 2022, State Treasurer Colleen Davis, with the endorsement of the Delaware Plans Management Board, extended the ASPIRE529 pilot program and will once again offer financial assistance to youth in or aging out of the foster care system seeking higher education.

Awarded on a first-come first-served basis to qualified individuals, ASPIRE529 funds may be used towards costs associated with higher education including books and supplies, materials required for skills training, transportation, and child care.

“Individuals aging out of the foster care system face a number of obstacles as they begin their ‘adult lives,’ and furthering education shouldn’t be one of them,” Treasurer Davis said. “I am proud to offer ASPIRE529 awards in order to help these people take their next steps towards success.”

A total of up to 20 qualified applicants will be eligible to receive an award of $529. To be eligible for an award, a student must:

• Be under age 26, and:
  • At least 14 years old and currently in Department of Services for Children, Youth, & Their Families (DSCYF) Custody (foster care); or
  • Exited DSCYF Custody to adoption or guardianship at the age of 16 years or older; or
  • Aged out of foster care in Delaware at age 18.
• Complete a current-year Delaware Aspire529 application prior to the deadline. (June 30th)
• Be a Delaware resident.
• Be a U.S. citizen, permanent resident, or approved refugee.
• Be an undergraduate student.
• Show proof of enrollment or attendance at an institution of higher learning or trade school, AND if already attending, must be making satisfactory academic or vocational progress toward completion of that program. Proof of enrollment or attendance can be requested through your school’s registrar or administrative offices.

The application period runs from June 1, 2023, until June 30, 2023. Winners will be notified by September 1, 2023. The online application can be found at de.gov/aspire529.

“The Aspire529 helps youth transitioning out of foster care in Delaware overcome financial barriers while achieving their education goals,” said Tamara Myles, Transitional & Independent Living Program Manager with DSCYF’s Division of Family Services. “This award will help many pay for education expenses and will afford them the opportunity to acquire less debt during their post-secondary education journey.”

“After serving them during their years in foster care, the youth need our support now more than ever,” said Caroline Jones, President, and Founder of Kind to Kids Foundation. “We need to work hard to break down any barriers that can stand in the way of the success of these vulnerable young adults.”

In addition to $529, awardees will also receive valuable financial literacy education from $tand By Me®, a financial coaching program partnership of the State of Delaware and the United Way.

“Becoming educated on how to handle money is just as valuable as the education this money will help provide,” said Valerie Cannon, Senior Social Service Administrator in the Division of Social Services. “We commend Treasurer Davis and the Plans Management Board for including a financial literacy component to ASPIRE529 and are proud they chose Stand By Me to provide the lessons.”

$529 payments available to qualified applicants

Citing information showing nationwide, only about half of youth raised in foster care end up finishing high school, and less than 3% graduate from a four-year college, Delaware State Treasurer Colleen Davis announces the Aspire529 program. Aspire529 is a pilot program for youth in or aging out of the foster care system to help them pay for expenses related to college or vocational training.

“Fewer than one-third of those aging out of foster care last year with a high school diploma or GED in Delaware went on to enroll in college or trade school,” said Treasurer Davis. “With many facing financial obstacles like the cost of transportation and child care, the option of pursuing higher education is too often overlooked.”

The annual awards are available on a first-come, first-served basis with youth able to submit one application per academic year. Upon application submission, review, and approval by the Office of the State Treasurer, a total of up to 20 qualified applicants will be eligible to receive an award of $529. The money may be used towards accompanying costs associated with obtaining a degree in higher education such as paying for books and supplies, materials required for skills training, transportation costs and child care.

The application period runs from June 1, 2022, until July 31, 2022. Winners will be notified by September 1, 2022. The online application can be found here.

To be eligible for an award, a student must:

• Be under age 26, and:
  • At least 14 years old and currently in Department of Services for Children, Youth, & Their Families (DSCYF) Custody (foster care); or
  • Exited DSCYF Custody to adoption or guardianship at the age of 16 years or older; or
  • Aged out of foster care in Delaware at age 18.
• Complete a current-year Delaware Aspire529 application prior to the deadline. (July 31st)
• Be a Delaware resident.
• Be a U.S. citizen, permanent resident, or approved refugee.
• Be an undergraduate student.
• Show proof of enrollment or attendance at an institution of higher learning or trade school, AND if already attending, must be making satisfactory academic or vocational progress toward completion of that program. Proof of enrollment or attendance can be requested through your school’s registrar or administrative offices.

“Young adults aging out of foster care are met with many financial and logistical challenges when it comes to attending college and/or trade schools,” said Sophia Elliott, Transitional & Independent Living Program Manager with DSCYF’s Division of Family Services. “This award will help break down barriers and open up doors for youth to begin their post-secondary education journey. The Aspire529 award will help pave the way for youth to successfully achieve their education goals!”

The Office of the State Treasurer joined with $tand By Me® to provide a practical financial literacy course to complement the award. Each recipient will participate in two free, private, one-on-one financial coaching sessions from trained, skilled professionals.

“Stand By Me has partnered with several local organizations looking for ways to tackle the challenges of financial literacy to youth transitioning into adulthood,” said Shayne Lewis, Stand By Me Program Supervisor. “We are especially committed to improving financial literacy among youth facing increased financial challenges in the wake of the COVID-19 pandemic and resulting economic crisis.”

“The dollar amount of the award becomes much more valuable when paired with the financial education that winners will receive along with it,” Treasurer Davis said. “With the support of Aspire529, state agencies, and advocacy groups, we can help build a brighter future for foster youth as they set out on their own.”

“Aspire529 provides support to youth in foster care who have overcome tremendous obstacles to obtain an education,” said Caroline Jones, President and Founder of Kind to Kids Foundation. “These awards will help our community’s most vulnerable youth achieve advanced education and become productive and successful members of our society. Thank you to State Treasurer Colleen Davis for providing this funding and making a positive impact in their lives.”

Questions about the Aspire529 program can be sent to Treasury_Aspire529@delaware.gov.

New program waives tuition, room and board at Delaware public universities and colleges for eligible students

WILMINGTON, Del. – Governor John Carney on Thursday signed into law House Bill 123, legislation sponsored by Representative Krista Griffith and Senate Majority Whip Elizabeth Lockman that creates the Delaware Fostering Independence Through Education Tuition Waiver Program to support students in foster care as they work toward a higher education degree. This new program requires Delaware State University, Delaware Tech Community College and the University of Delaware to waive all tuition and fees, including room and board, for any youth who has aged out or spent at least one year in foster care as a teenager.

“Making sure all of Delaware’s students have an opportunity to succeed has been our top priority,” said Governor Carney. “This legislation will ensure some of our most vulnerable children are supported when pursuing higher education. Thank you to Representatives Griffith and Longhurst, Senators Lockman and Poore, the Delaware Department of Services for Children, Youth and Their Families, and other advocates who carried this important legislation over the finish line. Our children will be better off because of it.”

Under this legislation, eligible students must apply for any and all financial aid before being granted the tuition waiver for any leftover tuition and fees. Students may use the tuition waiver until they turn 27.

“Investing in our students’ dreams has a ripple effect across Delaware. With this tuition waiver program, our youth in care have a chance to leap over obstacles as they enter adulthood. I’m thankful for the support of our Governor and the Delaware Legislature to make this program a reality,” said Josette Manning, Cabinet Secretary of the Delaware Department of Services for Children, Youth & Their Families (DSCYF). “Our youth who experience foster care are incredibly resilient, despite facing a disproportionate number of challenges in their young lives, and we can do our part as a state to support them on their journey.”

Prior to this legislation being signed, youth experiencing foster care only had access to the federal Chafee Educational and Training Voucher program and the Ivyane D.F. Davis Memorial Scholarship Fund, a state-funded scholarship program. With the tuition waiver program in place, youth who have experienced foster care can pursue their dreams without worrying about how to pay for college or where to find housing.

“We know that young people who have been through the foster care system as teens and have aged out experience worse outcomes overall than their peers in terms of educational attainment, full-time employment, stable housing and financial independence,” said Rep. Krista Griffith, lead House sponsor of HB 123. “We can do more to make sure our students in foster care thrive as adults by removing the financial barrier to higher education. This will encourage youth in foster care to go out and earn a college degree, giving them tools they need to identify and obtain a path forward to achieving their dreams.”

“Young people who have worked hard to get to college after spending significant time in Delaware’s foster care system deserve every ounce of our support,” said Senate Majority Whip Elizabeth “Tizzy” Lockman. “I want to thank Rep. Krista Griffith and Governor John Carney for recognizing that fact and taking action today to remove barriers that prevent some of our most vulnerable young people from achieving their goals, realizing their potential, and embarking on an education that will lead them to a brighter future.”

According to DSCYF, it is estimated that about 15-20 incoming freshmen will likely take advantage of tuition waivers under House Bill 123 each year. Governor Carney supported this legislation in his 2020 State of the State Address.

“This legislation is so important,” said Mayda Berrios, student at Delaware State University. “Although I’m graduating this year, I am so happy that some many young people will be able to benefit from this. Thanks to the members of the General Assembly who pushed this beyond the Youth Advisory Council and made this into a bill today so that the future generation of foster youth who are experiencing hardships can now experience higher education.”  

Additional information on the tuition waiver program can be found here.

Video from today’s bill signing can be found here.

Photos from today’s bill signing can be found here.

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DOVER – Governor John Carney and Delaware State Housing Authority (DSHA) Director Anas Ben Addi announced the launch of a new homeownership program for recent college graduates at an event recognizing Homeownership Month. The new program, Homes for Grads, will offer discounted rates on DSHA’s down payment assistance loans for homebuyers who have graduated college with a four-year degree or higher in the last three years.

Joining the Governor and Director Ben Addi to launch the program were elected officials, higher education officials, realtors, lenders and housing counselors.

Homes for Grads will provide a reduced mortgage rate of 50 basis points or one-half of a percentage for recent college graduates when they are accessing one of DSHA’s Preferred Plus loans which include down payment and settlement assistance.

“Having an educated workforce is critically important to our state, but one of the economic development challenges we face is attracting college graduates to our state and keeping them here,” said Governor Carney. “The Homes for Grads program is another incentive we can offer to encourage these graduates to make Delaware their home. We think this can have a lasting impact on our state’s economic wellbeing by encouraging our best and brightest residents to stay here in Delaware, contributing to our economy and to our communities.”

With the cost of a college education continuing to rise each year, many graduates will leave school with student debt, including 65 percent of Delawareans. This debt can be a significant barrier to affording monthly payments and saving for a down payment.

“We want to make buying a home a reality for more Delawareans throughout our state. The Homes for Grads program will help us reach this recent college graduate population who may be struggling with student debt and facing other barriers to homeownership,” said Director Ben Addi. “The program will make the home-buying process easy and affordable for those who have just completed their college education.”

“The Homes for Grads program offers a great opportunity for Delaware State University graduates to put down roots here in our state,” said Provost Tony Allen. “Our graduates have the knowledge and skills that Delaware employers are looking for, and this new program provides an additional incentive to encourage them to buy a home and stay in Delaware after they finish their schooling.”

Homes for Grads is being funded with a $10 million commitment from DSHA and will be subsidized by revenues from DSHA’s primary homeownership loan programs. In addition, the program is financed with support from Discover Bank.

“Discover Bank is proud of our successful partnership with DSHA to provide mortgages to low- and moderate-income borrowers throughout our state,” said Bank President James J. Roszkowski. “This Homeownership Month, I am pleased to say that, through our partnership with DSHA, we helped over 2,200 families reach the goal of homeownership last year, with over $350 million in mortgage financing. The Homes for Grads program is an excellent example of DSHA’s creative strategies to improve the mortgage program. Discover Bank has $50 million in commitment remaining to DSHA for mortgage financing in 2019 to support this effort, and others, to help our neighbors, and our communities.”

DSHA will work with its participating lenders to offer the Homes for Grads program to recent college graduates. Tracy Chongling, vice president of mortgage lending at Guaranteed Rate, a participating DSHA lender, said she sees great potential in the new Homes for Grads program and is thrilled to be able to offer it to potential homebuyers. “I hear every day from Delawareans who do not think they will be able to afford to buy a home, including many college graduates who have not been able to save for a down payment due to student loan debt,” she said. “This new program will help so many of these individuals and families achieve the American dream of buying their own home.”

Buyers who participate in the Homes for Grads program must meet eligibility requirements for DSHA’s homeownership loan programs, including credit score and income limits. They will be required to have a minimum credit score of 620. If their credit score is not at this number, DSHA offers financial coaching to help buyers improve their score and get on the path to homeownership.

In correlation with the launch of this new program, DSHA is also adjusting the income levels for its homeownership programs in order to provide more opportunities for residents to purchase homes in Delaware. The new income limits are based on the area median incomes for Delaware’s three counties and are tied to the number of people living in a household. Previously, DSHA used a flat household income limit for all buyers. The new income limits can be found on DSHA’s homeownership website.

Recent college graduates who are interested in learning more about how to participate in Homes for Grads should visit DSHA’s homeownership website or contact a participating lender.