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While I'm sure Treasurer Magaziner has the best of intentions, his comments, like most big government initiatives, create enormous unintended consequences. Parents should be aware that a $25 grant, $200/mo payments, and a 7% annual rate of return gets the parent of a newborn to $86,000 at the time of college entry in 2033. At that time, URI's tuition, room, and board for an in-state student will be about $57,000, assuming a historic rate of 4% annual increases. The first question the Admissions Dept. at URI will ask prior to granting financial aid is: Do you have a 529 plan? If you do, the amount of aid will be reduced by the amount in the 529. Better for parents to put the $200/mo. into the mutual fund of their choice, in their name, and make their child eligible for financial aid. Better yet, get the government out of the entire process.