10,000 NYC schoolchildren to get college savings accounts

AP News
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Posted: Nov 22, 2016 2:01 PM

NEW YORK (AP) — Some 10,000 New York City children will start kindergarten with $100 in a college savings account thanks to a public-private partnership intended to boost the number of students attending college.

Under the three-year pilot program announced Tuesday, about 3,500 kindergartners will get so-called 529 college savings accounts next fall.

Another 3,500 kindergartners will get the accounts in the fall of 2018 and a third group in the fall of 2019.

Families that meet savings benchmarks will get up to another $200 in matching funds.

The program is being funded with $10 million from Jon Gray, the global head of real estate at the investment firm Blackstone Group.

It will be overseen by a newly created nonprofit called NYC Kids Rise.

Similar programs exist in cities including San Francisco and Boston.