HAWAI`I IMPROVES COLLEGE SAVINGS PROGRAM

December 6 - Lt. Governor Aiona held a news conference at Pauoa Elementary School to announce significant improvements to Hawai`i’s college savings program.

The program, now called "HI529 – Hawai`i’s College Savings Program," will lower costs and broaden investment options for parents looking to provide their children with a college education.

“The State of Hawai`i has the mission to help make going to college a possibility for all students in Hawai`i, and this improved plan is a big step forward in reaching that goal,” Lt. Governor Aiona said.

The Lt. Governor announced an innovative partnership between the state Departments of Budget and Finance and Education, Upromise Investments, Inc. and the Hawai`i Association of Independent Schools to promote the revamped program.

Established under Section 529 of the Internal Revenue Code, the college savings program allows withdrawals to be exempt from federal and Hawai`i state income taxation, provided that the withdrawals are used for qualified tuition expenses.

“To say that college is important is an understatement,” Lt. Governor Aiona said. “It is a place where children grow into adults and students transform into professionals. With a little planning and the right investments, more families can prepare for the costs of college.”