Blog

Obama Hears Our Plea, Drops Proposal to Raise Taxes on 529 Savings Plans

Feb 3, 2015

by Suada Kolovic

After widespread criticism from both parties, the Obama administration decided to scrap its proposal to raise taxes on college savings accounts. Just last week, we blogged about President Obama's proposal to "roll back" tax benefits of 529 college savings plans and "repeal tax incentives going forward" for Coverdell Education Savings Accounts. Luckily, that's no longer the case.

According to The New York Times, the decision came just hours after Speaker John A. Boehner of Ohio demanded the proposal be withdrawn from the president's budget, "for the sake of middle-class families." Interestingly enough, top Democrats, including Representative Nancy Pelosi of California, the minority leader, pressed for the repeal. Administration officials initially defended the plan as an attempt to redirect tax benefits that they said largely benefit wealthy families toward tax credits that help poorer families. The administration will keep its plan to expand other higher education tax breaks, a White House official told The Times. (For more on this story, click here.)

What are your thoughts on the administration scrapping its proposal? Are you relieved? Share your thoughts in the comments section. And don’t forget to try and fund your education with as much free money as possible – a great place to start is by creating a free profile on Scholarships.com, where you’ll get matched with financial aid that is unique to you!

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

Comments (0)

Changes to 529 Savings Plans

Feb 5, 2013

by Suada Kolovic

Figuring out how you’re going to pay for your college education can be intimidating. No one wants to pay off student loans for the rest of their lives, full-tuition scholarships are rare and federal student aid seldom covers all college costs but if you’re lucky enough to have a parent or relative willing to help curb the financial strains, it’s important to note that college savings plans are becoming increasingly flexible and affordable. Here are some of the changes to the 529 savings plans for 2013:

  • Increase gift tax exemptions: Grandparents can gift $14,000 annually before they’re charged a gift tax. Since five years of the exempted amount can be gifted at one time, that’s a five-year donation of $70,000 per grandchild while a married couple could potentially gift $140,000, provided they don’t give additional funds to the same grandchild in the five-year span.
  • Expanded qualified expenses: Last year, families couldn’t use 529 plan funds for laptops, iPads, internet service and software but the IRS is going high tech and realizes these are necessary items for higher education. Parents of a student who receives a full or partial scholarship can now use the funds to enhance their child’s educational experience.
  • Declining plan prices: Competitive bidding among plan management companies to run 529 plans on behalf of states is contributing to the trend of downward pricing. (For more information about 529 plans, click here.)

And don't forget, you should pay for your college education with as much free money as possible! Find as many scholarships and grants as you can before turning to student loans. Visit the Scholarships.com free college scholarship search today where you'll get matched with countless scholarships and grants for which you qualify, then apply and win! It’s that easy!

Comments (0)

1 
Page 1 of 1

Recent Posts

Tags

ACT (20)
Advanced Placement (24)
Alumni (17)
Applications (86)
Athletics (17)
Back To School (73)
Books (66)
Campus Life (462)
Career (115)
Choosing A College (57)
College (1015)
College Admissions (245)
College And Society (321)
College And The Economy (379)
College Applications (148)
College Benefits (290)
College Budgets (216)
College Classes (448)
College Costs (497)
College Culture (606)
College Goals (387)
College Grants (54)
College In Congress (89)
College Life (580)
College Majors (223)
College News (608)
College Prep (166)
College Savings Accounts (19)
College Scholarships (159)
College Search (117)
College Students (471)
College Tips (119)
Community College (59)
Community Service (40)
Community Service Scholarships (27)
Course Enrollment (19)
Economy (122)
Education (28)
Education Study (29)
Employment (42)
Essay Scholarship (38)
FAFSA (55)
Federal Aid (100)
Finances (70)
Financial Aid (417)
Financial Aid Information (59)
Financial Aid News (58)
Financial Tips (40)
Food (44)
Food/Cooking (27)
GPA (80)
Grades (91)
Graduate School (56)
Graduate Student Scholarships (20)
Graduate Students (65)
Graduation Rates (38)
Grants (62)
Health (38)
High School (130)
High School News (73)
High School Student Scholarships (184)
High School Students (310)
Higher Education (110)
Internships (526)
Job Search (178)
Just For Fun (119)
Loan Repayment (41)
Loans (49)
Military (16)
Money Management (134)
Online College (20)
Pell Grant (28)
President Obama (24)
Private Colleges (34)
Private Loans (19)
Roommates (100)
SAT (23)
Scholarship Applications (163)
Scholarship Information (179)
Scholarship Of The Week (271)
Scholarship Search (219)
Scholarship Tips (87)
Scholarships (403)
Sports (62)
Sports Scholarships (21)
Stafford Loans (24)
Standardized Testing (46)
State Colleges (43)
State News (35)
Student Debt (85)
Student Life (512)
Student Loans (141)
Study Abroad (67)
Study Skills (215)
Teachers (94)
Technology (111)
Tips (508)
Transfer Scholarship (16)
Tuition (93)
Undergraduate Scholarships (35)
Undergraduate Students (154)
Volunteer (45)
Work And College (83)
Work Study (20)
Writing Scholarship (18)

Categories

529 Plan (2)
Back To School (368)
College And The Economy (519)
College Applications (258)
College Budgets (351)
College Classes (577)
College Costs (767)
College Culture (947)
College Grants (134)
College In Congress (133)
College Life (991)
College Majors (338)
College News (943)
College Savings Accounts (57)
College Search (400)
Coverdell (1)
FAFSA (117)
Federal Aid (133)
Fellowships (23)
Financial Aid (713)
Food/Cooking (79)
GPA (280)
Graduate School (109)
Grants (73)
High School (550)
High School News (261)
Housing (174)
Internships (580)
Just For Fun (236)
Press Releases (14)
Roommates (142)
Scholarship Applications (226)
Scholarship Of The Week (347)
Scholarships (601)
Sports (77)
Standardized Testing (59)
Student Loans (226)
Study Abroad (62)
Tips (854)
Uncategorized (8)
Virtual Intern (549)