State unveils matching college grant program for military families
State Treasurer Kate Marshall and USAA announced plans Wednesday to expand a matching college grant program to help Nevada military parents plan their children’s future.
She estimated 6,000 military families in Nevada with an adjusted gross household income of less than $75,000 will be eligible for the program.
Originally designed for the state’s Purple Heart Medal recipients, Marshall said the USAA Distinguished Valor Matching Grant Program now will be available to all active military, active reservists and members of the Nevada National Guard.
“Most people don’t have a parent to go to who’s going to write that one big check,” she said.
Marshall encouraged families to save a little at a time to take the dent out of loans many students need to get their degrees.
“If you tell people the cost of a college education today, a lot of parents just throw up their hands,” Marshall said at a Sawyer Building news conference.
“Think about taking small steps so your child doesn’t go into so much debt,” she said. “Every dollar you save is a dollar less they have to borrow. You’re earning interest on a dollar instead of them paying interest on a dollar.”
Eligible families can earn up to $300 per year in matching grant funding, with a lifetime maximum benefit of $1,500 per child. That means a family with two children destined for college could earn a combined maximum benefit of $3,000.
The program calls for Nevada military members to open a USAA 529 college savings account through the San Antonio-based, military friendly banking and insurance corporation.
One category is for active reservists, active Guard members and Nevada National Guard soldiers and airmen who qualify.
A second category is for Purple Heart wounded warriors and families of fallen soldiers from the wars in Iraq and Afghanistan. In the case of fallen service members, the beneficiary must be a child or spouse of the Purple Heart Medal recipient.
Money in the USAA 529 account can be used for any eligible college in any state or abroad. There is no federal income tax for qualified withdrawals from the account.
In Nevada, college costs a student $19,000 per year in room, board, tuition and fees at the University of Nevada, Las Vegas, and $16,000 at the University of Nevada, Reno.
The cost for tuition and fees is roughly $6,300 at UNLV and $6,600 at UNR, based on 30 credits per year.
Applications for the USAA Distinguished Valor Matching Grant funding for this year will be accepted through Dec. 15.
The Nevada College Savings Plan program, administered by the state treasurer’s office, has more than $9 billion in assets with more than 500,000 account owners. For more information about the USAA program go to www.usaa.com/matchinggrant.
Contact reporter Keith Rogers at krogers@reviewjournal.com or 702-383-0308.
