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Trust, Trusts, and Accountability: The Role of States in College Saving Plans
Author(s) -
McCoskey Melanie G.,
Bellar Stephanie,
Bennett Lisa Blair
Publication year - 2003
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.2303003
Subject(s) - fiduciary , pace , investment (military) , accountability , state (computer science) , business , finance , accounting , monetary economics , economics , political science , law , politics , duty , geodesy , algorithm , computer science , geography
With the adoption of Section 529 plans, states have played an increasing role in college savings. When parents prepay for their children's college education, states invest the proceeds with the expectation that the investment returns will cover tuition increases. In times of fiscal stress, states decrease funding for higher education, causing schools to increase tuition. Because current investment returns have not kept pace with tuition increases, state managers have an even greater burden to ensure that these funds are managed properly. Our research interest is the fiduciary role of state governments in managing these plans in a volatile investment market.