About the Benefit
For many employees The College Tuition Benefit is the most desired employer sponsored benefit after core medical, life, disability, and retirement benefits.
For a low cost, $3-$4.00 per eligible employee, per year, an employer can provide a $500 SAGE scholarship to each employee. The $500 award can be used to send children, grandchildren, even nieces and nephews to college. For employees that care enough to save for college, there is an annual 5% SAGE scholarship match of the employee's savings.
This scholarship is administered by SAGEScholars and can be used at nearly 200 private Colleges and Universities. Scholarship balances not used by one child can be transferred to other children's education.
The College Tuition Benefit is also a great way for an employer to offer 529 plans from multiple states, all without the burden of payroll deduction. Spouses can use the site to open 529 plans and register a child or the same childfor another $500 SAGE award. Often employees enjoy better investment pricing with The College Tuition Benefit than they do as an individual investor.
The greatest reward for the employees who plan for their children and grandchildren's college expenses is the 5% scholarship reward.
Here is how the educational dollars accumulate for an employee who rolls over an existing 529 account into The College Tuition Benefit, for a 14 year old. Assuming the account has $30,000 in it when it is rolled over and grows at a hypothetical 8% and the employee continues to contribute $2,000 a year.
| AGE |
529 ACCOUNT BALANCE |
5% REWARD |
SAGE SCHOLAR BALANCE |
| 14 |
$30,000 |
$1,500 |
$2,000 |
| 15 |
$34,400 |
$1,720 |
$3,720 |
| 16 |
$39,152 |
$1,958 |
$5,678 |
| 17 |
$44,284 |
$2,214 |
$7,892 |
*Includes employer provided $500.
When the child goes to school they will have over $44,000 to help pay for school and can reduce their college tuition expense by an additional $7,892 by selecting a participating SAGE Scholar Institution.
Please note, member colleges and universities reserve the right to include SAGE as a part of, or separate from, any other financial aid or scholarship award offering. SAGE awards are provided regardless of any financial need.
If the College Tuition Benefit sounds like a valuable program for your company, give us a call (610) 520-4900, email us at information@collegetuitionbenefit.net.
|
Email site to HR Dept. | Email site to spouse/grandparent.