Two major changes have been made to Georgia’s Path2College 529 Plan. It helps CSRA families save money for their child’s college expenses.
New legislation, signed by Gov. Brian Kemp (R), raises the maximum balance from $235,000 to $550,000. Another enhancement is that the Georgia Higher Education Savings Plan (GHESP) Board has approved a waiver of the state administrative fee.
“Our state is one of the best in the nation for both quality of higher education and affordability, and raising the 529 Plan limit helps ensure that remains so well into the future,” said Kemp in a news release outlining the changes. “By making it even easier for parents to save for their child’s college tuition, we’re strengthening the future of our state and its economy.”
Kyle Parsons, director of Student Financial Aid and Scholarships at Augusta University (AU), told ABD that being confident they can pay for their children’s higher education can take some of the worry out of starting a family, particularly for young parents.
“A lot of times people weigh those kinds of factors into their long-term goals as far as what they want to achieve,” he said. “We know from the college lens that a lot of families, even with financial aid and other resources, there’s still that gap. Being able to cover those educational costs and planning ahead of time and getting that in now will benefit these families for well into the future and into their college years.”
To illustrate the advantages, the plan’s website says an account opened with $5,000 and a monthly contribution of $100 could grow to more than $53,000 in 12 years.
Participants retain full control over how to use the funds for qualifying expenses, including:
- Tuition at any accredited private or public college or university, community college, trade school, graduate school, and professional school across the U.S. and many abroad
- Certain room and board related expenses
- Fees, books, supplies and other equipment needed for enrollment and attendance
- Computers and related technology such as internet access fees, software or printers
- Certain additional enrollment and attendance costs for beneficiaries with special needs
- Pay for apprenticeship expenses—apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.
- Recognized postsecondary credentials and credential program fees.
“We see with college costs and the cost of living continuing to increase over time that investing early in their childhood future and their college education will only help them be set up for success down the road,” said Parsons.
Student enrollment at AU has grown exponentially for more than five years. In the Fall 2019 semester, 9,274 students enrolled. By 2025, that ballooned to 12,337. Parsons anticipates the improvements to the Path2College 529 could stimulate additional enrollment.
“The ability for the incoming students to have less of a financial barrier and less of a challenge in order to cover those educational expenses allows them to excel from the minute they step foot on campus and not to be faced or burdened with the struggle of the uncertainty of how they’re going to afford college or a meal plan or residence hall sets them up for success early,” he explained.
Path2College contributions are eligible for a state income tax deduction. An account can be opened with as little as $25. The maximum annual contribution is $8,000 per year per beneficiary. Withdrawals are then tax-free when used for qualifying expenses.
In addition to traditional, four-year college programs, Path2College funds can also be used for technical college and some apprenticeship programs.
More information is available at www.Path2College529.com or by calling (877) 424-4377. An account can also be opened on the website.
