Then, Congress passed legislation giving favorable federal tax treatment of the earnings. VSAC officials met with state policy-makers and financial leaders to fashion a plan for Vermont families. A bill to create a Vermont Higher Education Savings Plan was passed by the Vermont Legislature and signed by Gov. Howard Dean in 1998. Through 1999 we worked with TIAA-CREF, a leading national financial services company, to set up the program. A division of their company, Tuition Financing Inc., will manage program operations.
Saved dollars are cheaper than borrowed dollars.
You are paid to save, but you pay to borrow. In the long run, savers aren't penalized when financial aid is awarded. Favorable tax treatment boosts long-term savings yield. The Vermont Higher Education Savings Plan complements our ongoing efforts and responds to the need many families have expressed for a savings vehicle that does not require large investments. Use the feature Develop A Savings Plan for a step by-step description of how to use the Web to calculate a savings target.