California and Canada providing funds for low income students post secondary education

By Jackie Kraemer

The California Comeback Plan, signed into law by Governor Gavin Newsom earlier this month, lays the groundwork to create college savings accounts for 3.7 million low-income children in public schools across the state. Starting in the 2021-22 school year, California will provide a college savings account with $500 for every low-income first to 12th grade student in the state. Going forward, every incoming low-income first grader will automatically receive a college savings account with an initial deposit of $500 from the state.

Providing funds for low-income students to save for post-secondary education is a strategy used by some top-performing countries such as Canada. Canada offers families the opportunity to create a Registered Education Savings Plan (RESP) for their children. Through the Canada Education Savings Grant, the government matches 20 percent of family contributions up to CAN$500 per year, regardless of income, and an additional 20 percent match for low-income families. The government also makes annual contributions to RESPs for low-income families through the Canada Learning Bond, with no requirement for a family contribution. The bond provides an initial deposit of CAN$500 and CAN$100 each subsequent year until a child turns 15 for a maximum of CAN$2000.

For more about how high performing countries make post-secondary education accessible and affordable, see NCEE’s Top-Performing Country Education Profiles.

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