The recent passage of the One Big Beautiful Bill Act (OBBBA) marks a significant shift in the way American families can save for education. Set to take effect on July 4, 2025, this legislation expands the use of 529 plans, allowing for a wider range of educational expenses. According to analysts cited in the report, the outlook is promising.
New Provisions for 529 Plans
Under the new provisions, families will be able to use 529 plans not only for college tuition but also for:
- K-12 education
- Vocational training
- Specialized educational therapies
Addressing Evolving Educational Needs
This change is designed to address the evolving educational landscape and the diverse needs of students and their families.
Financial Flexibility for Families
The OBBBA aims to provide greater financial flexibility, enabling families to allocate their education savings more effectively. By broadening the scope of eligible expenses, the legislation seeks to support a more inclusive approach to education funding, ultimately benefiting future generations as they navigate their educational journeys.
The recent enactment of the One Big Beautiful Bill Act (OBBBA) has introduced significant changes in higher education finance, addressing student debt issues. For more details, see read more.
