"Remarks for The Council of Independent Colleges"
In these remarks, Mr. Biggs addresses the Council of Independent Colleges at the 2001 Presidents’ Institute. Among other things Mr. Biggs discusses two critical developments that give hope for better long-term funding for private or independent education in the U.S. First, he speaks about the fully predictable and spectacular future rise in philanthropic giving and, secondly, he addresses the emergence of tax advantage tuition savings and prepayments plans, which will not be focused solely on public institutions.
There is a new way that the American population may save some money to pay the tuition for their children. A major development in this regard is the new tax benefited savings plans that derive from the 1997 passage by Congress of Section 529 plans. Prior to this, the only feasible options for states were to adopt prepaid tuition plans that could only be used for in-state public institutions. The new state plans represent policy for the independent sector whereby funds can be saved and used at any accredited college or university, public or independent, in any state. Several of the states have very favorable state income tax advantages and all have the federal tax benefits of tax deferral for investment income and taxation at the lower student level upon withdrawal.
