December 4, 2017
WASHINGTON, D.C. (TK) –The College Savings Plans Network (CSPN) announced its support of H.R. 4508, the Promoting Real Opportunity, Success and Prosperity through Education Reform (PROSPER) Act. The bill, recently introduced by Rep. Virginia Foxx (R-NC) and Rep. Brett Guthrie (R-KY), aims to make post-secondary education more affordable for families across America.
The Act will exclude 529 college savings plans from counting as assets when calculating student need in order to encourage families to save for higher education.
Treasurer Young Boozer, Chair of the College Savings Plans Network—the nation’s leading objective source of information on Section 529 College Savings Plans and Prepaid Tuition Plans—issued the following statement on the introduction of this critical piece of legislation:
As a result of rising costs of college tuition, Americans have accumulated an excess of over $1.3 trillion in student debt over the past 40 years. The way to offset or avoid student debt is by saving early and often in a 529 plan. We must encourage savings for college expenses. We should not discourage savings by penalizing those who do save when it comes to determining other support available. For this reason, we are proud to support the PROSPER Act, legislation that will enhance the treatment of 529 plans in the determination of federal financial aid. We thank Rep. Virginia Foxx (R-NC) and Rep. Brett Guthrie (R-KY), in moving it forward and for continuing Congress’ tradition of improving savings opportunities for post-secondary education through 529 college savings plans.”
Young Boozer, Alabama State Treasurer and Chair of the College Savings Plans Network has this to say.
“CSPN has been following the conversation in the Senate about the tax bill passed Saturday morning. We are interested in the expansion of eligible education expenses in 529 plans to include up to $10,000 in annual K-12 expenses and look forward to working with Congress on implementing these changes with respect to 529 plans. This will provide added flexibility to families looking to save money to pay for the education needs of their loved ones and we appreciate Congress’ interest in enhancing 529 plans. Additionally, on Friday December 1, the House introduced the PROSPER ACT, which would exclude 529 plans from the calculation of federal financial aid. We believe this is a critical step in making 529 plans the best way to save for post-secondary education and appreciate Congress beginning the process of removing this hurdle to families saving for their children’s future.”
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