Designed to help families plan and save for an affordable college education for their children, 529 plans inherently help middle- and upper-income families more than they help low-income families unless local jurisdictions modify local policies. The local policy solution is to make the 529 tax deduction refundable thereby accruing benefits to those most in need of an affordable post-secondary education.
Wednesday, June 29, 2011
Public policy change can help address college affordability for low-income families
The latest issue brief from Capital Area Asset Builders (CAAB), College Savings Plans: A Key Tool for College Financing (PDF), explains why the District's 529 college savings plan does not benefit all families equally.