The College of Western Idaho and IDeal—Idaho 529 College Savings Program announced Thursday that they have teamed up to launch an innovative scholarship program. This program is the first of its kind in Idaho. The scholarship, called “CWIDeal Boost,” will provide matching funds provided by the College of Western Idaho to qualifying students who make tuition and fee payments to CWI directly from an IDeal 529 College Savings Account—up to $500 per semester or $1,500 per year.
“By providing these matching funds, we hope to inspire students to plan and save for college. If you’re willing to invest in yourself, we’ll invest in you, too,” said Kevin Jensen, Dean of Enrollment and Student Services. “We want families in Southwest Idaho to know that affordable, high quality higher education is within reach and, as your community college, CWI is committed to helping students find ways to pay for a great college education while avoiding unnecessary student loan debt.”
To qualify, students must meet certain financial and enrollment criteria and apply for federal financial aid. Specific program details can be found at cwi.edu/ideal. The CWIdeal Boost scholarship program has $70,000 in available funds for the 2015-2016 school year and funds will be awarded on a first-come, first-serve basis to students who qualify. One semester of tuition at College of Western Idaho costs $1,632 for in-district students and $2,132 for out-of-district students.
IDeal is Idaho’s state-sponsored 529 college savings plan, which is a tax-advantaged investment plan that allows families to plan and save ahead for the cost of college.1 Unlike traditional savings accounts, money in an IDeal account is invested, meaning it has a greater chance to grow through compounding, and when funds are withdrawn they are not taxed if used on qualifying expenses like tuition, fees, and books.2
Christine Stoll, IDeal Executive Director, said, “Our hope is that the students who learn about and use IDeal because of this program will see the power of a 529 plan, and will open accounts for their children and perhaps grandchildren, creating a college-going expectation for succeeding generations.”
CWI President Bert Glandon encouraged Idaho’s other colleges and universities to create similar programs for their students. “Given our state goal to increase the percentage of adults who obtain a postsecondary degree or certificate, we believe programs that promote saving and going on to college are critical. Collectively, we can send the message that higher education is obtainable, and it’s a smart investment for the future.”
Footnotes:
1 Contributions to the IDeal - Idaho College Savings Program are deductible from Idaho state income tax, subject to recapture in certain circumstances, such as a non-qualified withdrawal or a rollover to another state's qualified tuition program in the year of the rollover and the prior tax year.
2 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.