Saving for college is more important than ever. With the cost of college tuition on the rise, ScholarShare  and California GEAR UP are working together closely to provide families, parents, and young adults with resources and tools to help them prepare for higher education.

ScholarShare, California’s 529 college savings plan, has long been a partner of the California GEAR UP Education Trust Awards. GEAR UP has awarded 5,370 middle school students with Education Trust Awards, opened in individual ScholarShare accounts established in the student’s name in the amount of $2,000 each, for a total of $10,740,000. The awards are available to students within one year of high school graduation and upon college enrollment.

ScholarShare is a way for parents to share in their child’s road to a higher education.  There are a number of benefits offered by ScholarShare.

• Any adult or U.S. legal resident with a social security number or federal taxpayer identification number can open an account.
• Grandparents, friends, aunts, and uncles can open an account or contribute to an existing one.
• Earnings are tax free when withdrawals are used for qualified higher education expenses.
• Accounts can be opened with as little as $25.
• Funds can be used at eligible schools nationwide and many international schools.
• Funds can be used for a variety of qualified higher education expenses.
• A variety of low cost investment options are offered.

College remains important to California parents.  According to the California College Saving Survey in September 2012, 84 percent of parents strongly believe in the importance of a higher education as an objective in its own right, and as a way to open doors to other dreams and aspirations.  Even during challenging economic times, parents are still putting a priority on saving for a higher education while making sacrifices in other areas. Many California parents are willing to cut back on family vacations or eating out, even more striking delaying their retirement.

While California parents consider a college education crucial, most are worried about being able to afford it.  Here are some helpful tips on how families can save for college.

• Be supportive:  Children will aspire and be prepared for college if they are surrounded by adults who foster a positive educational environment not only in school but at home.
• Set realistic goals:  You may not be able to save enough for all four years of tuition, room and board, and other expenses, but you could save enough to help put your child’s education within reach.
• Reach out to friends and family:  Instead of birthday and holiday gifts for your child, let your friends and family make contributions. Of those that know about 529 plans, few know that people other than the child’s parents can contribute, such as grandparent’s aunts, uncles, and even the students themselves.
• Let your child know you’re saving for their higher education:  You may be surprised at how much pride and appreciation they demonstrate, knowing that college is in their future.
• Start saving as earlier as you can:  The key to saving for college is to start early and save regularly. By saving a set amount regularly, your money can grow as your child does. And before you know it, you’ll be just as ready for college as they are.

ScholarShare offers a way for families to save for college and to help make college become affordable. When it comes to college savings, it is never too late for families to share in their child’s future.

For more information about ScholarShare, visit www.ScholarShare.com, call toll-free 1-800-544-5248, or visit the ScholarShare Facebook [link to www.facebook.com/scholarshare529] and Twitter [link to www.twitter.com/scholarshare529] pages.

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Consider the investment objectives, risks, charges and expenses before investing in the ScholarShare College Savings Plan. Visit ScholarShare.com, or call the Plan, for a Disclosure Booklet containing this and other information.  Read it carefully. Before investing in a 529 plan, consider whether the state where you or your Beneficiary resides has a 529 plan that offers favorable state tax benefits that are available if you invest in that state’s 529 plan. The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice, based on their own particular circumstances, from an independent tax advisor. Investments in the Plan are neither insured nor guaranteed except for TIAA-CREF Life Insurance Company’s guarantee to the ScholarShare College Savings Plan under the Funding Agreement for the Principal Plus Interest Portfolio, and there is a risk of investment loss. Account values will fluctuate based on a number of factors, including general market conditions. TIAA-CREF Tuition Financing, Inc., Program Manager

About ScholarShare

ScholarShare is California’s official 529 College Savings Plan and California GEAR UP statewide partner. Anyone can open a ScholarShare Account for anyone else, and more than one person can contribute to a single Account. ScholarShare funds may be used at thousands of eligible educational institutions for tuition, fees, books, supplies, and equipment required for enrollment or attendance, as well as certain room and board expenses. Account owners control the selection of ScholarShare investment portfolios, withdrawals, and change in beneficiary. Note: Transfers and rollovers may be subject to differences in features, costs and surrender charges. Indirect transfers may be subject to taxation and penalties. Consult your tax advisor about your own situation.

Benefits

Whether your child or loved one is a newborn or entering high school, ScholarShare, California’s 529 College Savings Plan, can help you achieve your college savings goals. Here’s how ScholarShare can make a child’s future brighter:

• California state and federal income tax deferral on any earnings
• Withdrawals for qualified higher education expenses are state and federal income tax free*
• For use at many schools nationwide and abroad — undergraduate and graduate programs, community colleges and trade schools
• Low minimum contribution of just $25 and a high maximum account balance limit
• A low, annual asset-based fee and no annual account maintenance fees
• Family and friends may contribute

To learn more about the ScholarShare College Savings Plan, visit ScholarShare.com or call 800.544.5248.

Consider the investment objectives, risks, charges and expenses before investing in the ScholarShare College Savings Plan. Visit ScholarShare.com, or call the Plan, for a Disclosure Booklet containing this and other information. Read it carefully.

Before investing in a 529 plan, consider whether the state where you or your Beneficiary resides has a 529 plan that offers favorable state tax benefits that are available if you invest in that state’s 529 plan.

The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. Taxpayers should seek advice, based on their own particular circumstances, from an independent tax advisor.

Investments in the Plan are neither insured nor guaranteed except for TIAA-CREF Life Insurance Company’s guarantee to the ScholarShare College Savings Plan under the Funding Agreement for the Principal Plus Interest Portfolio, and there is a risk of investment loss. Account values will fluctuate based on a number of factors, including general market conditions.

TIAA-CREF Tuition Financing, Inc., Program Manager.

ScholarShare’s Program Manager: TIAA-CREF Tuition Financing, Inc. (TFI), part of the TIAA-CREF group of companies, is a leader in 529 college savings plan management. TFI provides program management services for ScholarShare. TIAA-CREF is a national financial services group of companies and a leading provider of retirement services in the academic, research, medical and cultural fields.

Valley High School is finishing preparations for their second annual National GEAR UP Day celebration to be held on September 30. Activities include:

• Business and Community Leaders Breakfast starting at 8:00 am.
• Campus tours and classroom visits
• Lunch-time Student activities and performances
• An opportunity to network with business and community leaders, families, and educators.

National GEAR UP Day is a celebration of transformative work of California GEAR UP – Valley High School Collaboration that includes dramatic gains in the statewide API, the opening of a Family Center, distribution of 100 Education Trust Awards, the implementation of a Leadership Skills Initiative, as well as on-going school-wide academic support.

Confirmed attendees include:

• Penny Edgert Principal Investigator, California GEAR UP, Executive Director, California Education Roundtable
• Robert Oakes, Vice President & General Counsel, Association of Independent California Colleges & Universities
• Vicki Lovotti, Executive Assistant, Intersegmental Coordinating Committee
• Carolyn Hamilton, CA Dept of Education, P-16 Policy Development Division
• Alice Kawazoe, Consultant, CAPP
• Timoteo Rico, Director, EAOP UC Davis
• Jessie Ryan, Associate Director, Campaign for College Opportunity
• Arlene Greene, Deputy Director, Scholarshare Investment Board
• Marsha Robinson, Ellen Ringer, Middle Grades Improvement Office, CA Dept of Education

For information on this event or to attend, please contact Deisy Padilla:DPadilla@egusd.net

Continue to follow events across the state as we cover National GEAR UP Day across California.

May and June is Education Trust Awards season for California GEAR UP schools, so we thought we would share some information on our partner, ScholarShare. ScholarShare is California’s official 529 College Savings Plan. 529 plans are tax advantaged savings vehicles named for the section of Internal Revenue Code under which they were created. Earnings on 529 investments grow tax-deferred, and disbursements, when used for qualified higher education expenses, are federal and state tax-free.

ScholarShare is a great way to start saving for college for the following reasons:

• Accounts may be opened online with as little as $50, or $15 with automatic monthly contributions
• No annual account maintenance fee
• No income limit

ScholarShare is the investment partner for the California GEAR UP Education Trust Awards. Award recipients are selected by school personnel at California GEAR UP middle schools.  The awards are available to students within one year of high school graduation and upon college enrollment. California ETA awards are in the amount of $2,000 and can reach up to $2,500 by the time students attend college.

For more information on ScholarShare, visit their site or take a look at the comprehensive information on CaliforniaColleges.edu.

The ScholarShare College Savings Plan is administered by the ScholarShare Investment Board, an agency of the State of California. Neither the principal deposited nor the investment return is guaranteed by the State of California, ScholarShare Investment Board, Fidelity Investments or any affiliate thereof, or the federal government or any agency thereof. Units of the Portfolios are municipal securities and may be subject to market volatility and fluctuation.