1)
What
is the Nevada College Kick Start Program?
The Nevada College Kick Start program
establishes a college savings scholarship of $50 for all public-school
kindergarten students in Nevada. The program is administered by the Nevada
State Treasurer’s office and the Board of Trustees of the College Savings Plans
of Nevada.
2)
Where
does the funding come from?
The Nevada College Kick Start program
is funded through grants, private sponsorships, and program management fees. No
taxpayer dollars are spent to fund Nevada College Kick Start Program accounts.
3)
What
action is required to prevent your child’s account from expiring?
The Nevada College Kick Start scholarship
is created automatically through information provided from your child’s
kindergarten school. The scholarship will expire, and any remaining funds will
be returned to the Program if the scholarship account is not claimed by August
1st following your child’s 4th grade year or if the funds are not used for
qualified higher education expenses before the child reaches the age of 25.
Please go to www.nv529.org and click on “Claim your child’s
account”.
4)
How
many Nevada kindergarten students are included in the Nevada College Kick Start
Program?
As
of December 2019, there were more than 244,000 students enrolled in the Nevada
College Kick Start Program.
5)
Will
participating in the Program cost us anything?
No, it’s free. There are no fees,
charges, or hidden costs.
6)
Will
the money grow?
The
Nevada College Kick Start scholarship account established for your child is
invested in the SSGA Upromise 529 Plan. This account has the opportunity to
earn interest and grow over the 13-year period before your child graduates from
high school. Nevada College Kick Start accounts will expire and any remaining
funds will be returned to the Program if the account has not been claimed or if
the student does not use the funds for qualified higher education expenses
before reaching the age of 25.
7)
Why
kindergarteners?
Families
who begin a discussion and plan for college expenses while their child is in
kindergarten will have a thirteen-year window in which to plan and save for
future higher education costs. Further,
the establishment of a specific college savings scholarship account helps plant
a seed in a child’s mind that he or she is college bound.
8)
How
will only $50 make a difference in my child’s ability to go to college?
Research
conducted by the Center for Social Development at Washington University in St.
Louis outlined in, “The Role of Savings and Wealth in Reducing ‘Wilt’ Between
Expectations and College Attendance,” found that children with a college
savings account are up to seven times more likely to attend college than those
without an account. Similarly,
a study conducted by the University of Kansas’ School of Social Welfare found
that college savings send a strong message to children: “You are a college saver. You are college-bound.” The study
also concluded that “Even small accounts, in many cases inadequate to even buy books for a
semester, increase perseverance and improve academic preparation.”
9)
Who
manages the Nevada College Kick Start account?
Nevada College Kick Start accounts are
held within the SSGA Upromise 529 Plan managed by Ascensus College Savings, the
program manager for many of the college savings 529 plans offered by the state.
10) How can I keep informed about
the Nevada College Kick Start Program?
Once
you have register your child’s account on our portal (www.vistashare.com/p/nv/kickstart),
you can sign on at any time to check the balance of the account.
11) What if I do not want my child
to have such an account?
Simply
complete the “Opt-Out” Form available at www.CollegeKickStart.nv.gov.
12) Can
we use the savings in my child’s Nevada College Kick Start Program account for
anything besides college?
Nevada College Kick Start scholarship
funds may only be paid to a US Department of Education eligible institution of
higher learning (college, trade school, technical school) on behalf of the
student to cover qualified education expenses when that student is enrolled and
attending that institution.
13) How do I access the money when my child goes to
college?
When
your child is ready to use the money for higher education, he or she will need
to contact the Treasurer’s Office at 1-888-477-2667 to request a distribution.
The Treasurer’s Office will verify the student’s information and arrange for
the funds to be sent to the institution on the student’s behalf.
14) What if I already have a college savings
account for my child?
That’s
great! Be sure to link your SSGA or Vanguard 529 account to their Nevada
College Kick Start scholarship account via our portal at www.vistashare.com/p/nv/kickstart
,so your child may be eligible for any future funding.
15) What are examples of Internal Revenue Code
approved higher education related expenses?
Cost
of tuition, fees, books, supplies, certain room and board expenses, or any
other Internal Revenue Service qualified higher education related
expenses. Savings in a 529 college
savings account grow tax-deferred and if used for qualified higher education
related expenses at eligible institutions are free from federal taxes.
16) What
if my child does not go to college?
If a traditional four-year college
isn’t right for your child, you can use the funds to pay for other kinds of
postsecondary education, like technical and vocational training. If your child
decides not to pursue post-secondary education, the funds in the Nevada College
Kick Start account will be returned to the Program. Any funds you’ve
contributed into your separate 529 College Savings account are available to be
transferred to another child in your family or refunded to you. Remember,
though, that any earnings on the funds you contributed that are not used for
qualified education expenses at an eligible school may be subject to income tax
and a 10% penalty.
17) Will
a Nevada College Kick Start account disqualify my child for financial aid or
count against any benefits I may receive?
The Nevada College Kick Start account
is considered a scholarship account and as such it should not count against
your family in the calculation of financial aid. Of course, college enrollment
for your kindergartener is many years off and new regulations on calculating
financial aid may be different. Be sure to contact your own tax and financial
professional when the time comes for a distribution.
18) Where can I find additional
information?
Visit
our Nevada College Kick Start Program website at www.CollegeKickStart.nv.gov.
19) How do I open my own separate
college savings account?
It
is easy to open a separate 529 College Savings Plan for your personal
contributions by visiting the Nevada State Treasurer’s website www.nevadatreasurer.gov/CollegeSavings.
Some
529 College Savings Plans allow you to open an account with as little as $15
and then make contributions as you wish to that account going forward. You can
do this for any student, not just kindergartners.