January 19, 2001

Who Benefits From States' College-Savings Plans?

By ANDREW P. ROTH

Today almost every state sponsors a program that confers tax benefits to help students and their parents save for college. The growing popularity and importance of such programs should not go unnoticed by higher-education leaders. In fact, the trend demands that we ask, once again, classic questions of any program that provides some form of student aid. Who pays? Who benefits? Who should pay?

Since 1997, in research for a book on the topic, I have studied virtually all the

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