Trump Admin Makes Billions Available for Trade Schools
“The route to a successful career does not have to take you through college.”
This is fantastic news. We need so many more tradesmen and this will help.
The College Fix reports:
$500 billion now available for trade schools, thanks to Trump budget
Aspiring welders, HVAC technicians, and carpenters can now access money their mom and dad socked away in a college savings account years ago all thanks to a policy change in the recent “One Big Beautiful Bill” signed by President Donald Trump.
The change to 529 savings plans “allows the accounts to be used to help pay for a broader range of post-high school credentials, like certification in specialties like auto mechanics or food safety, and related expenses,” according to the New York Times.
This means the estimated $500 billion in 529 plans can now be used to pay for trade school and even tools in some cases.
Money can also be used now for ongoing certification or retraining, as long as it comes from an accredited program. Law students can also use the money to pay for the bar exam, and other professions can similarly use the funds for certification tests.
Higher education consultants interviewed by the NY Times were generally optimistic about the new policy.
“The route to a successful career does not have to take you through college,” Andrea Feirstein told the Times. She has spent decades consulting on 529 accounts, savings plans, and public finance in general, according to her LinkedIn.
The new policy also recognizes an important fact of life – parents do not know what careers their kids will pursue when they are young and are considering whether to open up a 529 plan.
It seems plausible the change, once more people learn about it, could lead to an increase in savings in these accounts. This is because parents may have been wary in the past to tie up money in the accounts, fearing their children might not use it if they ended up going to trade school.
Now there is more flexibility and a recognition in law that college is not the only way to success, as Feirstein pointed out to the NY Times.
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Comments
hmmm
we just saved money by defrocking npr
and while this trade school act appears noble…..thats what socialism always promises …….let the free market make the loans
the welfare state is failure
see current employment numbers for that
This is not loans. A 529 is an account you can pay into an not have to declare the dividends or interest on your taxes. The only way the government contributes to a 529 is by not taxing the earnings. The catch is it can only be used for education. The bill just makes a broader range of things qualify as education.
So this brings up an issue I’ve never thought about. Parents or grandparents established a 529 for their kids, their kids end up not going to college, what happens to the money? Certainly it doesn’t get tied up forever?