Be Significant In The Lives Of Others
What Is Our Theory Of Change?
A View From Grace Foundation strives to go above and beyond expectations to achieve maximum impact for our clients in achieving tangible goals and objectives.
Current Conditions
(Assumptions)
College graduates will make 2 times more than non college graduates.
College costs will grow at 6 times the rate of US economy.
Student loan debt is unsustainable and exacerbates the wealth gap.
Current 401K and 529 CSP enable payoff of exiting student loan debt, but with limitations.
Current 529 CSP can be rolled over into Roth IRA, but with limitations.
Strategies
(How)
Financial Literacy Education and Training.
Community Colleges for foundational courses.
529 College Savings Plans (CSPs) at Birth.
Increased incentives and flexibility of exiting tools to pay off existing loans.
Increase the flexibility of unused 529 CSP funds in direct use in home purchase.
Action
(What)
Federal tax deduction for individual and corporate contributions to 529 CSPs.
Community College credits fully transferrable to institutions that receive federal aid.
Public-Private partnerships to fund initial contributions.
Increased amount of 401Ks and 529 CSPs funds that can be used to pay off existing student loan debt.
Increase the amount of unused 529 CSP funds that can be rolled over into ROTH IRA or directly applied to home purchase.
Impact
(Effect)
Reduced reliance on student loans to pay for college.
Early and increased family savings for college.
Increased attendance at community colleges and In-state colleges.
Increased flow of funds into the market and associated increase in net worth of all invested in the markets.
Increased home ownership and associated increase in net worth for those with 529 CSP funds remaining after graduation.
Vision
(Outcome)
Debt free graduation from college for at least 50% of those individuals at or below 500% of Federal Poverty Level (FPL) for those who choose to attend college.