Anything that can give an incentive to families to start saving for college is a good thing,'' said Joe Bettinger, who counsels seniors and their families at Effingham County High School in southeast Georgia. The plan also exempts any earnings in the account from state income taxes. Early withdrawals from the fund would be subject to both state and federal taxes, plus a 10 percent penalty. While HOPE pays tuition at state universities and colleges, the education savings account could be used at any public or private school, in state or out, and go toward housing, food and other expenses the scholarship doesn't cover. But her plan didn't include the governor's income cap.
Republican lawmakers say they support encouraging parents to save for college.
The plan is expected to be introduced by Barnes' floor leaders in the House of Representatives on Monday.