College & Workforce Readiness

Colleges

May 02, 2001 2 min read
  • Save to favorites
  • Print

Spend and Save: A new company has launched a college-savings plan that promises to help families save money for their children’s future education when they buy new cars, enjoy dinner and a night out on the town, or make other purchases.

Upromise Inc., based in Brookline, Mass., announced the program at an April 24 news conference in New York City. Officials also provided a rundown of the companies that have agreed to participate in the endeavor, including big-name corporations such as AT&T, Borders Inc., Century 21 Real Estate Corp., Citibank, Coca-Cola, General Motors, and drug store chain CVS Corp.

The plan allows individuals to start a family-savings network that can include parents and two other family members. A percentage of dollars spent with Upromise partner companies will go into college-savings accounts.

For example, AT&T will contribute 4 percent of customers’ residential charges to their Upromise accounts. Seventy online retailers have agreed to kick in up to 12 percent of purchases made through Upromise. And Toys “R” Us Inc. will contribute 2 percent of purchases to the account. The participating companies also pay Upromise an undisclosed sum to join the program.

Parents also can have their money put into a guaranteed college-savings plan managed by Salomon Smith Barney or Fidelity Investments. According to a study commissioned by Upromise last fall, tuition at the average four-year college will more than double over the next two decades—to $15,879 from $7,472 in today’s dollars—if present economic trends continue.

Upromise, whose staff includes former U.S. Sen. Bill Bradley as an adviser and a board director, says that a family making $60,000 per year would be likely to save at least $20,000 over 15 years in the program.

Upromise CEO Michael Bronner, who dropped out of Boston College because he couldn’t afford the tuition, said he hopes to encourage families to start saving for college as early as possible.

“We’re trying to overcome this epidemic where people aren’t saving,” Mr. Bronner said, adding he wants “to create a movement where people start saving for college.”

Participating companies will be featuring Upromise in millions of mailers, bill inserts, and circulars, and in store displays at 45,000 locations nationwide.

A recent study by Washington-based Hart Research Associates found that 82 percent of parents believe that college is moving out of financial reach, and half of the surveyed parents with college-bound students had saved $1,000 or less for college.

—John Gehring

Related Tags:

A version of this article appeared in the May 02, 2001 edition of Education Week

Events

Student Well-Being K-12 Essentials Forum Boosting Student and Staff Mental Health: What Schools Can Do
Join this free virtual event based on recent reporting on student and staff mental health challenges and how schools have responded.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Curriculum Webinar
Practical Methods for Integrating Computer Science into Core Curriculum
Dive into insights on integrating computer science into core curricula with expert tips and practical strategies to empower students at every grade level.
Content provided by Learning.com

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

College & Workforce Readiness Should Students Sign Up for AP or Dual Enrollment? What Readers Think
EdWeek readers share their take on the debate over pathways to earning college credit in high school.
4 min read
Educators at the College Board's AP annual conference learn about various AP program offerings intended to address access and equity to advanced coursework for underrepresented students in Seattle, Wash. on July 20, 2023.
Educators at the College Board's AP annual conference learn about various AP program offerings intended to address access and equity to advanced coursework for underrepresented students in Seattle, Wash. on July 20, 2023.
Ileana Najarro/Education Week
College & Workforce Readiness Parents Value 'Workforce Development.' Here's How to Get Their Support for CTE
The ways in which schools and policymakers talk about career and technical education influences parents' support for it.
4 min read
Students make measurements to wood to add to a tiny home project during their shop class at Carrick High School in Pittsburgh, Pa., on Dec. 13, 2022.
Students make measurements to wood to add to a tiny home project during their shop class at Carrick High School in Pittsburgh, Pa., on Dec. 13, 2022.
Nate Smallwood for Education Week
College & Workforce Readiness Q&A Common App Will Offer Some Students Direct College Admission. Its CEO Explains
A new program aimed at motivating more first-generation, low-income students to go to college launches this month.
7 min read
Illustration of a college building and diverse students.
Collage via iStock/Getty
College & Workforce Readiness Opinion To Help Students, One Company Has Unlocked $100 Million a Year in College Aid
A peer-based mentoring organization encourages high school seniors to apply to college and helps them receive financial aid.
7 min read
Image shows a multi-tailed arrow hitting the bullseye of a target.
DigitalVision Vectors/Getty