The Nation - News from July 31, 1987

Three senators, worried that spiraling college tuitions have largely eclipsed federal loan and grant programs, proposed special tax-free trust funds for parents preparing for their children’s education. Sen. Claiborne Pell (D-R.I.) said the bill would allow parents to save money in a special government trust in which earnings would not be taxable and, unlike an IRA, the money would not be taxed upon withdrawal if used for tuition or other college expenses. “Whether a child were to choose to attend an Ivy League college, a state university, a community college or a trade and technical school, the same educational benefits would apply,” Pell said in a Senate floor statement.