California launches nation's largest college savings program for millions of students, newborns

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California launches nation's largest college savings program for millions of students, newborns
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California has launched the nation's largest college savings program for millions of low-income public school students. Here's what you need to know:

is a taxpayer funded scholarship program that encourages kids to start saving for college as soon as they're born. The program invests $1.9 billion into accounts for low-income children in grades 1-12 and for newborn children born on or after July 1 of this year.

The seed investments grant every newborn up to $100 and between $500 and $1,500 for school-age children. "California is telling our students that we believe they're college material - not only do we believe it, we'll invest in them directly," Newsom said in a statement. "With up to $1,500, we're transforming lives, generating college-going mindsets, and creating generational wealth for millions of Californians."

The tax-free money is invested in a mutual fund managed by ScholarShare, the state's college savings plan. Then it can be used for tuition and books. CalKIDS will send notification letters to qualifying children and families in the coming months, officials said.

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