Tennessee is rebooting an option for parents looking to save money for their kids’ college. It’s a tax-exempt account to save for tuition, fees, dorm rooms and books – something the state hasn’t offered for the last couple years.
State Treasurer David Lillard unveils the state’s new tax-exempt college-savings program. WPLN/Daniel Potter
The state folded its earlier college-savings plan, which partnered with Georgia, when few people signed up. State officials say things are different this time because analysts at Tennessee’s own treasury will manage the investments.
But the economy still isn’t what it could be. Lauren Johnson has an eighteen-month old daughter, and is expecting a second child. Her husband manages a restaurant in Nashville, and Johnson says they can’t afford to set much aside right now.
“It’s something that we want to be able to do, but we just can’t do it right now. And it is scary, but we’re just not there right now.”
State Treasurer David Lillard says tuition has been rising around 6 percent a year in Tennessee. To promote the new program, state officials are buying slots for a television ad, and trying to run it as a public-service announcement as well.
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