D65 kindergarteners eligible for college savings program

The Class of 2036.

That’s this year’s kindergarteners … those cute little children who will become college or vocational school students a lot faster than you might think.

It’s scary to imagine how much post-secondary education will cost in 2036, but Evanston/Skokie School District 65 is partnering with the Evanston Community Foundation (ECF), the YWCA, and Cradle to Career to provide seed money for today’s kids facing tomorrow’s tuition.

“It’s an investment in hopes and dreams,” says ECF Senior Vice-President Rebecca Cacauryan.

While the amount for each kindergarten family, up to $200 depending on income and participation in financial literacy programs, is not huge, the significance, says Cacayuran, is very large indeed.

A study mentioned in the D65 Board meeting earlier this week noted that “children from low to moderate income households with $1-$499 saved for education are 3 times more likely to pursue postsecondary education and four times more likely to graduate.”

And Cacayuran says “we think we’re gonna blow that result out of the water.”

Each family’s money will put into a “529 Plan”, a savings program where earnings are not taxed if the funds are used for college, trade school or other post-high-school education or training.

Evanston Community Foundation’s “Community Works Endowment” will provide the money. District 65 tax dollars are not being used.

That endowment, Cacayuran says, was built up over the years, “not just by big donors, but by hundreds of small contributions,” and there is now enough to get started.

All of D65’s approximately 600 kindergarteners are eligible to enroll. If they all do, ECF will cover the $120,000 total.

Starting in the next school year, the program will sign up the incoming kindergartners, along with sixth graders.

And, each year after that, another cohort of kindergarten and Grade 6 students are eligible. (The program, of course, is voluntary).

The idea is that as more students sign up each year, and keep moving up grade by grade, “Savings for Success” will ultimately include all 10,000 students in both District 65 and 202.

At least, that’s the goal. The ECF endowment will still need more contributions.

“We have a vision,” Cacayuran says.

As currently structured, each participating child will receive a $50 deposit in the college savings plan. Those eligible for free and reduced priced lunch will get another $50. If families add some of their own money, this program will match it, dollar for dollar, up to $50. There are also opportunities for a couple of $25 additional payments for taking part in financial literacy and post-high-school career education.

The State of Illinois also has a separate program where any child born or adopted after January 1, 2023, can receive a $50 deposit in a 529 plan, so the Evanston and state contributions can go into the same account.

The local YWCA is already involved with a pilot program, which began six years ago. More than 40 families received the same grant amounts as will be in “Savings for Success.”

Significantly, Cacayuran says none of those families withdrew any of the money during the hard times of the COVID pandemic, and more than half continued to add savings contributions of their own.

District 65 will be providing information to families on signing up, and information is also available online.