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For Immediate Release
November 10, 1999

Senate approves enhancements to college savings program

HARRISBURG – The state Senate today approved legislation that will expand Pennsylvania’s popular Tuition Account Program and enable strong investment returns to be shared with TAP account holders, according to Senator Mary Jo White (R-Venango).

White said the TAP Enhancement Act, sponsored by Sen. Robert C. Jubelirer (R-Blair), will make an already outstanding program the best in the nation. TAP was created by the Legislature in 1992 to allow families to pre-pay college tuition, as a way to guard against future increases.

The measure approved today would enable families to share in TAP Fund investment returns; allow private colleges and universities to be included in the pre-paid tuition guarantee; offer room-and-board coverage; permit larger refunds when accounts are closed; and allows for TAP scholarships.

"These improvements make the pre-pay tuition program even more attractive," White said. This legislation would enable the Treasury Department to share investment successes with participants, in the form of additional TAP tuition credits.

The bill would also authorize families to pre-purchase tuition at private colleges and universities that choose to participate, with the TAP guarantee. TAP accounts already may be used at any college; however, the guarantee to keep up with tuition inflation currently only applies to in-state public institutions, White said.

White added that, under Senate Bill 8, organizations would be allowed to use the TAP program to establish scholarship funds for unnamed beneficiaries. Currently, the program has to turn away businesses and other groups that would like to invest in TAP with the goal of creating scholarships. White said the proposed enhancement act would encourage the development of more scholarships on behalf of future college students.

"I really urge parents and grandparents of school-age children to look into this very effective way to fund a college education," White said. "I wish it had been available when my children were little. With three children in college at once it would have eased the cash crunch years."

 CONTACT: Leigh Ramsey 717-787-9684