Planning for college, whether through saving early or applying for financial aid later, can feel overwhelming. However, it does not have to be. There are programs and initiatives that can make higher education more accessible and affordable for students and their families.
In New Jersey, a new program is giving children a head start on the path to college. Below, we discuss this groundbreaking initiative and philanthropist Robert F. Smith’s efforts to reduce the burden of student loan debt.
Newark Saves: Building a College Pathway Early
The Newark public school system in New Jersey is helping students prepare for college early through a new partnership with the Prudential Foundation called the Newark Saves College Savings Program. The program, which launched through a $150,000 grant from Prudential, sets up tax-free 529 college savings accounts for eligible kindergarten students, each seeded with an initial $25 deposit. From there, families can contribute small amounts monthly, making saving for college more manageable to reduce reliance on student loans.
Beyond the seed deposit, students and families can earn additional contributions for good grades, consistent attendance, parent participation in conferences and more. The program also offers college planning sessions and financial literacy workshops.
By 2026, the program aims to open accounts for 3,000 kindergarteners.
Student Freedom Initiative: Reducing the Burden of Student Loan Debt
Student Freedom Initiative (SFI) is another organization that aims to reduce the financial burden of college on students and their families. SFI was developed as a result of Smith’s pledge to the Morehouse College class of 2019. During his commencement speech, Smith committed to eliminating their student loan debt and the debt taken on by their parents and guardians on their behalf. After seeing how the gift had already positively impacted the Morehouse graduates, Smith decided to expand his efforts and build scalable solutions to the crisis of student debt, leading to the creation of SFI with other leaders.
SFI launched with a $50 million contribution from Fund II Foundation, of which Smith is the founding director and President. He made an additional $50 million contribution of his own to support the organization. SFI makes college more affordable for eligible students attending Historically Black Colleges and Universities (HBCUs), other Minority Serving Institutions (MSIs) and Tribal Colleges and Universities (TCUs). As a student-centered nonprofit, SFI serves as an accelerator, offering academic, professional and financial support to students.
Learn more about how Smith is helping students create pathways to college by subscribing to his YouTube and following him on LinkedIn.