With May 29—also known as 529 Day, or a day of national observance for the tax-advantaged education savings plans operated by states and educational institutions—quickly approaching, the National Association of Student Financial Aid Administrators (NASFAA) offers tips to help educate families of prospective college students on the benefits they offer.
According to a new report released this month by Edward Jones, 72 percent of Americans aren't familiar with 529 plans and the many educational costs they can help to cover. This is up from the 66 percent who reported they didn't know what a 529 plan was just one year ago.
With all 50 states and D.C. offering at least one 529 plan, 529 plans are a great investment tool that can help cover college costs down the road. And that doesn't just mean tuition and fees.
Here are three things families may not realize can be covered under a 529 plan:
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 20,000 financial aid professionals at nearly 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every ten undergraduates in the United States. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit http://www.nasfaa.org.
Publication Date: 5/27/2016