Expanding access to college
529 College Savings Plans are the primary tax advantaged way for families to save for college. As a part of the Bipartisan Budget Act of 2015, Congress and the Administration approved common sense legislation to make improvements to the 529 program.
NAST and its affiliate, the College Savings Plans Network (CSPN), continues to work with Congress to improve 529 plans as Congress considers other changes to the tax code and the reauthorization of the Higher Education Act in 2019.
College Savings Plans Network (CSPN)
A Network of the National Association of State Treasurers
CSPN is the leading objective source of information about Section 529 College Savings Plans and Prepaid Tuition Plans.
CSPN brings together administrators of 529 savings and prepaid plans from across the country, as well as their private sector partners, to offer convenient tools and objective, unbiased information to help families make informed decisions about saving for college.
In the 119th Congress, NAST and CSPN’s primary goal is to make college and career training more affordable and accessible to all. To help us achieve this goal, our major legislative priorities are:
Freedom to Invest in Tomorrow’s Workforce
Although 529 plans may be used for many certificate programs at qualified institutions and registered apprenticeship programs, meaningful gaps remain. CSPN supports legislation which would expand the use of 529 accounts to include costs associated with participating in recognized postsecondary credential programs to achieve or maintain a recognized postsecondary credential. In 2024, over 40% of civilian workers are in a job requiring a credential. Healthcare (96%), education instruction (75%), and construction (60%) jobs have some of the highest credential requirements and demand. Allowing 529 accounts to be used for credentials authorized under the Workforce Innovation and Opportunity Act and similar state and federal laws would help address the growing need for students who can meet the competencies in many of the technical skills and jobs that employers find increasingly difficult to fill. This would also help older workers upskill or reskill to remain competitive in a rapidly changing workforce.
Encourage Saving for College Starting at the Workplace
The workplace is often where many Americans make decisions about saving. Tax code incentives that promote employer contributions into the retirement plans of employees have proven to be an effective method to increase retirement savings. Tax code incentives that similarly promote employer contributions to an employee’s 529 savings account will be an effective method of encouraging continued education among employees and provide a powerful employee retention benefit. Therefore CSPN urges Congress to enact legislation to encourage and incentivize employers to support their employees’ efforts to save for education in a 529 savings account to benefit themselves or their families.
Help Simplify Student Aid and 529s to Encourage Saving
Families often do not save in a 529 account out of (generally misplaced) concern that it will adversely impact their student’s chances to receive financial aid or scholarships. An overwhelming majority of 529 plan administrators view this perceived impact on federal financial aid as the top regulatory obstacle to American families fully utilizing 529 plans. CSPN urges Congress to take further action to revise the Higher Education Act (HEA) to change the current federal financial aid methodology to(i) remove the penalty on student-owned 529 accounts from the Student Aid Index (SAI) calculation and (ii) exempt the value of all assets in 529 accounts held by a parent for the benefit of a student from the SAI calculation for that student.