401(k) Program Offers New Way to Save for College

January 23, 2003 (PLANSPONSOR.com) - The North Track Funds is offering participants a unique way to save for college - credit for saving in their 401(k).

Through an alliance with SAGE Scholars (Savings And Growth for Education), the North Track Tuition Rewards Program allows 401(k) savers to accumulate savings toward college as well.  

“Like Frequent Flyer Miles”

“Through our North Track Tuition Rewards Program, investors who have assets in the North Track Plan4One or North Track 401(k) can earn up to $15,600 in guaranteed scholarships to any private college participating in the program.” Scott Stevens, Retirement Solutions Director, noted in a press release.   “No extra investment is required because awards are granted like frequent flyer miles, applicable towards tuition at many private colleges nationwide.”

The maximum scholarship per student is between $13,800 and $15,600, depending on the college, or up to a full year’s tuition, whichever is less.   The award is granted evenly over four years.

Annual “Additions”

According to the company, Tuition Rewards are calculated annually as 5% of net asset value of any North Track 401(k) account – and a grandparent’s 401(k) can earn Tuition Rewards scholarships for grandchildren’s education.  

The actual size of a Tuition Rewards scholarship is determined by two factors:

  • the amount of assets invested, and
  • the length of time the assets are invested.

Clients enrolling in the North Track Tuition Rewards Program receive an immediate $250 Tuition Reward, according to the firm.

You can find out more at their web site, www.northtrackfunds.com , or from an investment professional offering North Track Retirement Solutions.