New plan for college savings started

Tuesday, Oct. 9, 2001 | 9:31 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- A new plan to save money for college expenses, such as books, room and board and lab fees, is being introduced by state Treasurer Brian Krolicki.

Nevada has the prepaid tuition plan that is now in its fourth year, with 8,300 children enrolled. Parents, grandparents or others can invest to guarantee the future college tuition of their offspring or friends.

The new program is called the America's College Savings Plan and will allow savings to cover other expenses for those going on to higher education.

Krolicki said he has chosen Strong Capital Management, one of the nation's leading investment firms, to manage the new program. Families can select the portfolio that best meets their investment goals and open an account with as little as $250. Up to $246,000 can be contributed for a single beneficiary, and the earnings grow tax free.

America's College Savings Plan dovetails with the Millennium Scholarships, in which a Nevada high school graduate with a "B" average can qualify for up to $2,500 a year to attend a Nevada university, the treasurer said.

The Millennium Scholarship money covers tuition in most cases, but not books and other fees. The new plan would allow tax-deferred savings to accrue for the other costs associated with attending college.