Nevada County Picayune and Gurdon Times Newspaper Archive |
'GIFT' Available For CollegeMIKE ROSSSTATE SENATOR, DISTRICT 3 Published Wednesday, December 15, 1999 in the Nevada County Picayune Higher education officials have announced a new way of saving for college that receives favorable tax treatment from the state. The program was created by the legislature during the 1999 regular session. It is called the Great Investment For Tomorrow College Investing Plan, or the GIFT plan. People may open a college savings account with an initial $250 deposit, or with a $50 a month deposit schedule. Accounts are limited to $120,000 per beneficiary. Withdrawals are exempt from state taxes if they're used to pay for college tuition and expenses. Federal taxes on the account's earnings are deferred until withdrawal, and are taxed at the student's rate. It's common for students to be in lower tax brackets than their parents. The Arkansas Teacher Retirement System will supervise the investment managers who will invest the funds in the accounts. Previous tuition savings programs did not include provisions for designating a financial manager. Nolan Richardson, the basketball coach at the University of Arkansas, will appear in a series of advertisements promoting the GIFT plan. This year there are 104,000 students enrolled in institutions of higher education in Arkansas 36,000 attend two-year institutions and 68,000 attend four-year institutions. The average cost of attending a college in Arkansas is $9,000 a year. Private colleges are more expensive and some cost more than $20,000 a year. The GIFT plan also can be used to save money for graduate school, vocational-technical schools and community colleges. The accounts may be used to pay for a college education at institutions outside of Arkansas. State officials said it is possible that Congress will make the program free of federal taxes within a few years. Legislators, the governor and higher education officials strongly emphasized the importance of saving for college. For one thing, finances are a major factor in people's decisions whether to attend college in the first place. Also, lack of money is a frequently cited reason for dropping out of college. Having a college education makes a tremendous difference in a person's ability to earn money and find satisfying employment. On average, a person with an associate degree will earn about $8,000 a year more than a person with only a high school diploma. A bachelor's degree has even greater benefits. Compared to high school graduates, a person with a bachelor's degree will earn on average from $15,000 to $30,000 in higher income every year. For more information about the GIFT College Investment Plan, there is a toll free number operated by the state. It is 1-877-442-6553. Restriction on Telemarketers The legislature approved Act 1465 of 1999 to allow people to restrict the number of telemarketing calls they receive at home. For a $10 initial fee beginning January 1, Arkansas residents can put their names on a list of people who do not wish to be called by telemarketers. The renewal fee will be $5. The state attorney general will administer the list. Companies are prohibited from calling people on the list. There are certain exemptions, however, so the act will not eliminate all telemarketing calls. For information, there is a toll free number. It is 1-877-866-8225. Search | Nevada County Picayune by date | Gurdon Times by date |
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