South Carolina Launches $529 Grant Program for Newborns

Columbia, South Carolina

South Carolina officials announce a new initiative allowing babies born on May 29 to receive a $529 grant as part of the 529 Grant Program, which aims to encourage parents to save for their children’s future education expenses. The program was introduced by State Treasurer Curtis Loftis and is designed to assist families in setting up a Future Scholar account.

The grant is specifically available for babies born on May 29, with the funds intended for future use towards educational scholarships. In order to qualify for the grant, parents are required to complete a grant application and open a Future Scholar account by September 2, 2025. This initiative will provide necessary financial support for families who wish to invest in their children’s educational success.

Funding for the grants is sourced privately, allowing the program to function without burdening taxpayers. Each eligible family will also receive a Future Scholar goody bag, which contains information about the 529 program and the benefits it offers to participants.

Details of the Program

The Future Scholar plan comes with significant tax advantages for families. Contributions made to the account are tax-deductible, and any growth in the fund is tax-free as long as the withdrawals are earmarked for qualified education expenses. This allows parents the opportunity to maximize their financial contributions, setting aside money for educational expenditures without incurring tax penalties.

In addition to traditional college expenses, 529 plan funds can also be utilized for K-12 tuition, trade schools, registered apprenticeship programs, and even for repaying student loans. This expansive eligibility emphasizes the initiative’s goal of making educational funding accessible for diverse educational pathways.

National College Savings Program Awareness

This grant initiative coincides with National 529 Day, an observance designed to raise awareness about the importance of saving for children’s education. This day serves as an annual reminder for families to start planning and investing in their children’s future educational needs.

Background on South Carolina’s 529 Plan

South Carolina’s version of the 529 plan stands out for offering more generous tax benefits compared to similar plans in other states. By allowing contributions to the Future Scholar account to be state tax-deductible, the program encourages families to save more effectively. The tax-free growth and withdrawal feature further incentivizes parents to commit to their children’s educational fund.

With rising education costs, initiatives like the 529 Grant Program are becoming increasingly critical. They underscore the importance of early financial planning for educational expenses, ensuring that children have the resources necessary for a successful academic future.

The South Carolina 529 Grant Program is a forward-thinking approach aimed at increasing access to education funding. By assisting families in starting their children on the path to saving for higher education, this initiative contributes to building a foundation for long-term educational success across the state.