Oregon Public Broadcasting

Many parents have watched in horror as the recent stock market downturn has taken a huge chunk out of their children’s college savings account.    Oregon’s incoming Treasurer says he has a way to make saving for college a safer bet.  Salem correspondent Chris Lehman reports.

The Oregon College Savings Network lost big-time in the recent stock market turmoil.  That prompted lawmakers to schedule hearings on the issue.  

Now, Democrat Ben Westlund wants to create a pre-paid college tuition program.  Parents could lock in today’s tuition rates by paying into a savings account.  

It’s designed to be a safer investment than the state’s current college savings program, which is tied to the rise and fall of the stock market.  Westlund says the money in the pre-paid tuition program would be invested very conservatively.

Ben Westlund:  “We’re not talking corporate bonds. We’re talking certificates of deposit, U.S. Treasuries.”

The state would also insure the money against loss in value.  The plan would not cover non-tuition costs such as room and board.  Parents could still use the state’s current college savings plan to pay for those items.

The proposal already has momentum in the Oregon Legislature.  It has the backing of Senate President Peter Courtney.

Washington already has a pre-paid college tuition program.  Idaho’s College Savings Program, known as I-Deal, resembles the existing program in Oregon.