TPC Applauds Congressional Move to Create Parity for Pre-Paid 529s

Provision eliminates confusion and treats all 529 plans the same for financial aid purposes

Press Release

TPC Applauds Congressional Move to Create Parity for Pre-Paid 529s

February 2, 2006—Tuition Plan Consortium, the not-for-profit organization that sponsors Independent 529 Plan – a pre-paid tuition plan designed specifically for use at more than 250 private colleges and universities nationwide – applauded the inclusion of a provision that provides parity under the Federal need analysis rules between 529 college savings plans and 529 college prepaid tuition plans in the Budget Reconciliation Bill.

“Yesterday’s vote means that all 529 plans – either savings plans or prepaid plans – will be considered equal for financial aid purposes,” said Nancy Farmer, President and CEO, Tuition Plan Consortium. “Now, more than one million American families that currently own prepaid 529 accounts may be granted more financial aid than they would have before."

"We applaud Congress’ leadership on this issue. This is a win for parents and students who will now receive the same financial aid benefit regardless of what type of 529 they choose. This ends the confusion for families and will help encourage more parents to save for college," said Farmer.

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