Designing and Implementing a Savings Campaign in TexasRAISE Texas Summit
Federal Reserve Bank of Dallas—Houston BranchOctober 29, 2012
Laura Rosen
College Savings in Texas
Texas Tuition Promise Fund (prepaid) & Texas College Savings Plan
Assets Exempt from Public Benefits & State Financial Aid
Texas Save & Match (HB 3708) Targeted for Students in Free &
Reduced Lunch (economically disadvantaged)
Texas Match the Promise Foundation – Platform to accept private (and public) $ to be used for 529 college savings matching grants
Texas 529 Plan Enrollment Barriers
Plan awareness No retail presence State Securities Laws
Only broker-dealers and certified investment advisors can provide enrollment assistance and advice
Nonprofit partners handcuffed in marketing/enrollment role
No default investment option for either plan Some families not ready to overcome these
barriers For families that are…
Match the Promise Scholarships
•Up to $500 match on
tuition unit purchases
•Approximately150 awards
Matching
Scholarship
•$2,000 tuition grant
•5 awards
Promise
Scholarshipwww.matchthepromise.org
Scholarship Application Timeline
Sept.
1-
Decem
ber
31,
2012
•Scholarship Application Period
March
31,
2013
•Scholarship Award Notification
Augus
t 31,
2013
•Scholarship recipients have until this date to meet
contribution requirement
Scholarship Eligibility
Grades - Students in grades 6-9 Account Ownership – Must have a Texas Tuition
Promise Fund account or enroll by 12/31/12 Tx Residency – Must be a Texas resident and a
dependent for tax purposes of a Texas resident Family Income - $75,000 or less Savings Contribution - Minimum $100 contribution to
Promise Fund account during the current sales period – September 1, 2012 – August 31, 2013
Career Essay – Submit 200-300 word essay about the career in which the student is interested
Report Card or Transcript – Submit 2011-12 report card/transcript
Initial Pool – 797 account holders potentially eligible
Marketing the Scholarship: Opportunities & Challenges
No Action Letter from State Securities Board - Allows volunteers to distribute information about the scholarship
Constraints of Match the Promise Foundation Volunteer Instructions “The most a volunteer can do is hand out an information
packet. A volunteer cannot suggest verbally or in writing that a person apply for the Match the Promise program or open a Texas Tuition Promise Fund Account.”
Only registered broker-dealers, an agent of a broker dealer, and investment advisor or an investment advisor representative can assist a person in opening an account.
Social media related to scholarship deadline
Newsletter article Distribute packets, particularly to
partners that serve children in grades 6-9
Ways to Promote the Scholarship
www.matchthepromise.org
Next Steps
Pursue additional policy change to enable 529 enrollment assistance
Engage more systems to raise awareness: Hospitals Schools After-School Programs
Explore alternatives for college savings products to leverage, such as prepaid cards
Evaluate 2012-13 Pilot & Make Recommendations
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