[Congressional Record Volume 146, Number 36 (Tuesday, March 28, 2000)]
[House]
[Page H1420]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       EDUCATION SAVINGS ACCOUNTS

  (Mr. PETRI asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. PETRI. Mr. Speaker, 2 years ago we approved legislation which 
allows parents to put aside $500 each year in education savings 
accounts, where the money can be invested in order to grow tax free and 
where it can be added to each year so that it can grow enough to help 
pay for college tuition.
  Ever since we managed to get education savings accounts enacted into 
law, we have been trying to raise the amounts parents are allowed to 
put into their children's accounts each year. We have been trying to 
extend education savings accounts so that parents, grandparents, or 
other interested parties will be able to use them to prepare for 
private or parochial, elementary or high school expenses.
  If a family were able to put $2,000 in an education savings accounts 
every year, from the time a child was born, and if the account averaged 
7\1/2\ percent interest annually, it would hold $14,500 by the time the 
child got to 1st grade. If nothing were withdrawn and annual savings 
continued, that amount would rise to $46,500 when it was time for high 
school.
  President Clinton vetoed an extension of education savings accounts 
last September, but I am confident that most of us in the House think 
parents should be encouraged to save for their kids' futures and that 
is why we are going to try again.




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