Ah July. Fireworks, BBQs, beaches and yes, those first college tuition bills!
If you ever catch yourself wondering how you will pay for your child’s higher education, look no further than the CT CHET college savings program. Under the leadership of CT State Treasurer Denise Nappier, CHET is the premier program for Connecticut residents to save the money needed to send their children to college.
Paying for college is a challenge for almost all of us. While tuition has skyrocketed, financial aid has been stagnant at best. So have family earnings. Denise recognized not only that an education is essential to the future financial security of young people, but also that a well-educated workforce helps our state economy.
With that in mind, she shaped CHET to be affordable and accessible. She changed the program manager for CHET to TIAA-CREF Tuition Financing Inc., one of the most respected non-profit financial services organizations in the country, to reinvigorate CHET so it would provide solid investments, lower fees and greater access for citizens throughout Connecticut. One of her first actions was to lower the amount it takes to open an account from $500 to $25. With a $25 investment, most families can now get started on college savings without wondering, “how can I ever do this”?
Denise also has made it convenient and attractive to save – contributions can be made online, or through payroll or automatic bank account deductions, and anyone can contribute to a child’s account. That means grandma or grandpa (anyone) can contribute to your child’s CHET at any time, including “gift” occasions such as birthdays, holidays and celebrations.
There are tax benefits to the CHET program initiated in 2006 when Denise’s efforts led to establishment of a new tax deduction for Connecticut families who contribute to CHET. Then in 2010, she started CHET Advisor for families to invest in CHET through their financial advisor.
Her advocacy for use of CHET as a means to encourage families to help their children succeed is impressive. As Treasurer, she inaugurated competitions in which almost all of our schools participate, including CHET Dream Big and CHET Advance Scholarship. Even parents of newborns can get started soon with the CHET Baby Scholars, an incentive to start saving from “day one”.
The raw data demonstrates the success of Treasurer Denise Nappier’s efforts. When she became Treasurer in 1998, CHET had 4,000 accounts and $18.5 million in assets. Today, there are over 100,000 accounts and over $2.2 billion in assets. And over $815 million in qualified withdrawals have been taken to cover college costs for 25,700 students.
As a multi-year CHET contributor for my recent college graduate, I can testify to the simplicity and the benefits of this program. It works. Discover more at https://www.aboutchet.com.
Denise Nappier is a Treasurer of whom we can be proud. I plan to support her in the Fall elections—back to school time—and urge you to do the same.
The Ridgefield Democratic Town Committee supplies this column.