create a new type of college fund that will help US residents raise funds to further their education.

Families can put funds into an account that can be used for educational purposes. The perks of this new account would be that the money put in would not be taxed before or after. The money in the account will receive an interest rate equal to the inflation rate of the previous year. The money can be taken out at any time, but must be used at an accredited educational institution. If someone would like to withdraw the money to be used for something other than education, a fee will be charged. A possible example of this fee could be a certain percentage of the money deposited (this would be based off of the tax bracket the depositor is in to ensure that people don't use the college fund to reduce his/her tax contribution). It would be up to lawmakers to decide contribution limits.