Higher Education: Children's Savings Account Programs Can Help Families Build Savings and Envision College. Report to Congressional Committees. GAO-21-10

Rising college costs have outpaced federal grant aid and placed more of the financial burden on students and their families. Children's Savings Account (CSA) programs help families, especially lower-income families, save for college--and other postsecondary education--by providing financial contributions and possibly other supports. A Senate Appropriations Committee report included provisions for the Government Accountability Office (GAO) to examine various aspects of college savings account programs and their effectiveness. This report examines (1) the number of CSA programs and how they use strategies to help families, especially lower-income families, save and prepare for college; and (2) what is known about the effects of these strategies on families, including lower-income families. GAO reviewed 2016-2019 annual CSA program survey data collected by the nonprofit Prosperity Now. GAO also analyzed Consumer Financial Protection Bureau (CFPB) documents and the findings of 33 peer-reviewed studies from 2010 through 2019--and one working paper from 2017--that met GAO's criteria for inclusion, for example, used data from the United States. In addition, GAO interviewed officials from CFPB, the Department of Education, and four organizations that have expertise on these programs.