Parents who want to send their children to college might have some financial relief if a state treasury candidate gets his way.

Republican candidate Greg Baise, a small-businessman, has proposed a program designed to help middle-income families send their children to college. Baise faces Democratic candidate for state treasurer Pat Quinn in November.

“Middle-income families are the hardest hit by the rising costs of education. These parents are caught in a Catch-22, making just enough money to be ineligible for most school loan programs but not enough money to send their kids to college.”

Baise said college costs are rising at twice the rate of income without enough financial aid programs.

This college-savings plan would be a three-part program that would involve the state treasurer’s office, local financial institutions and Illinois colleges and universities.

The plan would issue Illinois parents a savings card that could be used in one of three ways—as a college savings card, debit card or as a credit card.

If used as a college savings card, parents with young children would be able to make deposits into mutual funds or certificates of deposits administered by the state. Parents would have to file a financial planning document with the state treasurer’s office.

The card also would allow parents to make investments that are pre-qualified by the treasurer as safe and suitable for college savings. The account number would allow deposits through payroll deductions or wire transfers.

Once their children began college, money in the college savings account would then be transferred directly to the college or university.

A second option would allow parents to use the card as a debit card. That way, parents could charge college costs directly with the card.

Baise said that with the third option credit card, he wants to make $50 million in state deposits available to financial institutions that card holders could use for low-interest loans.

The interest rate for loans made on the credit cards probably would be 1 to 2 percent lower than interest rates on conventional bank loans.

But Jerry Augsburger, NIU Student Financial Aid Office director, said Baise’s card “could not replace financial aid programs.”

Augsburger said financial aid is need-based and is offered to students who come from lower income families. Baise’s plan is aimed at the middle class parents who might earn too much to receive financial aid, but not enough to put children through college.

When a family or student requests financial aid there is an analysis made of the family’s need.

Augsburger said about 66 percent of NIU students are on at least one form of financial aid.

Financial aid includes all scholarships, grants, free money, student loans and student employment, Augsburger said.

Baise said the savings card would be available to all Illinois families, adding all parents should file a financial planning document that would provide them with some insight as to how to save for their children’s education.

The program would be available for all Illinois academic institutions, Baise said.