WASHINGTON, D.C.– In the 113th Congress, Congresswoman Lynn Jenkins (KS-02) has introduced two bipartisan bills (H.R. 529 & H.R. 4333) to help families save for college by improving 529 plans. Congresswoman Jenkins released the following statement regarding her legislation:

“The class of 2014 just graduated with the highest student loan debt ever recorded.  As we mark 529 day, I want to highlight steps we can take immediately to address the smothering amounts of student loan debt for future generations.

“H.R. 529 and H.R. 4333 are bi-partisan, sensible steps in making the college savings process easier for everyone. Saving for our children’s college education is one of the most important, and at times, most difficult aspects of being a parent. My legislation will not only make that process easier, but will make higher education a real opportunity for all Americans.”

The Legislation:

• H.R. 529 would establish a modest new employer-matching program and expand the access to lower income families.

• H.R. 4333 makes important updates including allowing 529 funds to pay for computers, an essential tool for today’s college students, and provides greater flexibility to manage 529 investments.  

What They Are Saying:

US News recently reported on the legislation, H.R. 4333:A piece of legislation currently in committee could end a long-standing debate among accountants and the managers of tax-advantaged college investment accounts: whether money in 529 plans, as these accounts are known, can pay for a student's computer.  …Another potential benefit of the bill for college savers is that it would allow changes to 529 plan account investments more than once per year…

US News continues: The final bit of good news would only exist if Jenkins' earlier bill is passed. That bill would include an income tax break for 529 plan contributions from employers to employees, up to $600.

The New York Times recently reported on the effects of rising student debt: A collection of studies show that the burden of student debt may well cause people to make difference decisions than they would otherwise – affecting not just individual lives but also the entire economy.

Another article from the New York Times said student debt may be stunting the economy: There’s a growing body of evidence that rising levels of student loan debt are restraining the ability of young adults to enter the “grown-up” economy – to buy a car and to buy a home and start filling it with big stuff.

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