For the next 20 years, any child born in Colorado after New Year’s Day will receive $100 toward a college savings account.
“This new law will incentivize the use of these tools by providing birth or adoptive parents with $100 to kick start their child’s savings,” Gov. Jared Polis said.
“We know that students with some college savings from low- and middle-income families are three times more likely to enroll in college and four times more likely to graduate than those without a 529 plan.”
The program began through House Bill 19-1280, and will require a parent or legal guardian to open a CollegeInvest account with the state. CollegeInvest is a division of the Colorado Department of Higher Education and offers scholarship and matching grant opportunities.
In addition to those children born between 2020 and 2040, the $100 startup money is available to children under the age of 5 who are adopted.
A 2017 report from the Institute for Higher Education Policy and Corporation for Enterprise Development found that children who had college savings of up to $500 were three times likelier to attend and four times likelier to graduate.
CollegeInvest is a state enterprise that operates without taxpayer money, and the college accounts similarly are not funded through taxes or fees.