Rhode Island Higher Education Assistance Authority: CollegeBoundFund Matching Grant Program

Assisting Rhode Island's Students...Investing In Rhode Island's Future

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THE APPLICATION PERIOD FOR THE 2009 MATCHING GRANT
HAS BEEN EXTENEDED TO MAY 11, 2010.

What if you invested a dollar in your child's education?

And we gave you a dollar...

And another dollar...

Would you invest a dollar in your child's education?

Introducing the CollegeBoundfund® Matching Grant Program – a new program from the Rhode Island Higher Education Assistance Authority (RIHEAA) and the Office of the General Treasurer that may triple your investment power. And one that can truly make a difference in your child's life.

Listen, we know that you're not going out for a candlelit dinner every night. And last Sunday, you probably cut so many coupons, you've got a blister on your thumb the size of North Dakota. You do your best. You do what's right. And still, you have no idea how you're going to come up with enough money to send your child to college. Now there's help.

First, a Quick Overview...

What is the CollegeBoundfund Matching Grant Program?

The CollegeBoundfund Matching Grant Program is one more reason to feel good about being a Rhode Islander. Designed to help low- and moderate-income Rhode Island families save for higher education, the Matching Grant Program can provide eligible participants with matching funds when they open and contribute to their child's CollegeBoundfund account.

In fact, if you and your family meet the requirements, the Program will match your contribution up to $500 each year (subject to the availability of funds). That's right, you could be eligible for up to $500 or even as much as $1,000 in funds that match your contribution to your child's CollegeBoundfund account.* You'll find details about matching rates below.

Save what you can. If you can invest even $50 in your child's account this year, you could receive up to $100 in matching funds. If you can do even more and invest $200, you could be eligible for as much as $400 in matching grants. The match you receive will depend on your income level and family size. And as long as you continue to meet the requirements and apply each year, you'll receive contributions matching the contributions you made to your child's account for up to five consecutive years.*

What is CollegeBoundfund?

Offering all families a simple, powerful way to save for a child's future, Rhode Island's CollegeBoundfund is a state-sponsored college savings plan managed by AllianceBernstein Investments, one of the world's premier investment firms. The plan offers you the ability to open your account with a minimal initial investment, 15 investment options, and the flexibility to use your funds at any accredited higher education institution in the country (see the CollegeBoundfund web site for more information).

Saving early is the key for families to afford to send their children to college. The CollegeBoundfund Matching Grant Program provides a valuable incentive for families to begin investing in their children's future and helps students achieve their dream of earning a college degree.

My child is so young. Why do I need to start thinking about college now?

With the cost of college increasing every year, saving early for your child's higher education is essential for you to achieve your dream of sending your child to college. By the time your son or daughter is ready to go to college, there is no guarantee that grants and scholarships will cover the entire cost. If you don't start saving now, your child (or you) could potentially face a great deal of student loan debt.

And, statistics show that someone with a college degree can earn 80%** more than someone who graduates from high school and doesn't pursue a college degree.

If you qualify for this Program, a separate Matching Grant Account will be opened by RIHEAA naming your child as Beneficiary. RIHEAA is the Participant of the Account and the Account funds are maintained by RIHEAA for the Beneficiary. For more information about these Accounts, their qualification requirements and their investment selection, please see the Matching Grant Program Description.

Now, Let's Send your Kid to College

To take advantage of the Matching Grant Program, you must open and contribute to your CollegeBoundfund account. Then, you'll need to apply for Matching Grants. If your application is approved, a separate account will be set up naming your child as beneficiary. When the time comes, the money in the account can be used by your child at any accredited higher education institution across the nation, from large colleges or universities to local technical schools.

The Program has two categories for contribution matches. Which category you qualify for depends on your family size and income:

Level 1: For every $1 (up to $500) you contribute, $2 is contributed to the account for a maximum match of $1,000***
Level 2: For every $1 (up to $500) you contribute, $1 is contributed to the account for a maximum match of $500***

The next section should give you a quick idea of whether you will qualify, but for more information, check the Matching Grant Program Description.

If you don't have a CollegeBoundfund account, take the first step. Open your CollegeBoundfund account and start contributing today! For those of you who have already opened a CollegeBoundfund account for your child, congratulations. You're on your way!

Am I Eligible for Matching Grants?

If you meet the requirements listed below, you may be eligible for Matching Grants.

You must be a Rhode Island resident.
You must be able to claim the child as a dependent for tax purposes.
Your CollegeBoundfund account must be opened for the child at or before the age of 10. He or she may receive matching grant funds for a total of five consecutive years. For example, even if you opened a CollegeBoundfund account when your child was 10 years old, your child's account would still be eligible for matching grants for a total of five consecutive years.
You must make a contribution(s) to your CollegeBoundfund account during the year for which you're applying for matching grants.
You must meet the income guidelines for one of the two matching grant categories. Guidelines are based on the Adjusted Gross Income (AGI) as described in the CollegeBoundfund Matching Grant Program Description or the income guidelines web page.

How Do I Apply for Matching Grants?

You can print an application by clicking here or call 1-866-348-3836 to request an application kit. After you've opened your CollegeBoundfund account and contributed to it over the course of a year, complete the Matching Grant Application for that year. Then, mail the application to the address below and be sure it's postmarked by April 30 to receive a Matching Grant for the prior calendar year. See the Matching Grant Program Description for more details about the application process. Remember, you are required to reapply for matching grant funds every year. Once you qualify for the Matching Grant Program, your Matching Grant will be invested in a separate CollegeBoundfund account until your child is ready to go to college.

So write this stuff down.

CollegeBoundfund Matching Grant Program
560 Jefferson Blvd.
Warwick, RI 02886

Call 1-866-348-3836

And one more thing to feel good about.

Rhode Island's Matching Grant Program is funded by fees collected through the sale of CollegeBoundfund accounts nationwide. A portion of the fees from out-of-state CollegeBoundfund accounts is used to develop grants and scholarships that help Rhode Island families send their children to college.

The CollegeBoundfund Matching Grant Program is one more reason to feel good about being a Rhode Islander.

* If you qualify for this Program, a separate Matching Grant Account will be opened by RIHEAA naming your child as Beneficiary. RIHEAA is the Participant of the Account and the Account funds are maintained by RIHEAA for the Beneficiary. For more information about these Accounts, their qualification requirements and their investment selection, please see the Matching Grant Program Description.

** Source: College Board, "Trends in College Pricing," 2001

*** Matching grant rates and awards are subject to the availability of funds.

**** A note about Public Assistance: If you are enrolled in any public assistance program, it is your responsibility to determine the effect of your CollegeBoundfund account and the matching grant account on your eligibility for public assistance programs. You should consult a qualified advisor to determine how your college savings plan and/or an award may affect eligibility for state and/or federal benefits.

***** A more detailed income guideline breakdown is listed in the CollegeBoundfund Matching Grant Program Description. RIHEAA updates the program income guidelines annually based on changes in poverty and median income leves. The most up-to-date information is available on this web site.

THE APPLICATION PERIOD FOR THE 2009 MATCHING GRANT HAS BEEN EXTENEDED TO MAY 11, 2010.

What if you invested a dollar in your child's education? And we gave you a dollar... And another dollar...