With the election over, changes in education policy are something we can expect to see. College savings options like 529 plans are a safe way to save. Staying current on policy changes and how this will affect student loans and tuition will help ensure sustainable saving.
- 5 ways President Trump could affect your student loans (Los Angeles Times, November 11)
President-elect Trump’s stance on higher education was not emphasized during the campaign, which has left many experts debating what changes we can expect to see when he takes office. Education policy changes will most likely affect the way people save and pay for college. Some policies that are being debated include changes to the income-driven repayment programs and giving colleges a say in lending decisions, creating a risk-sharing partnership for repayment. Private banks would also begin re-issuing student loans as was the norm prior to 2010. Trump has also discussed removing administrative “bloat” to reduce college cost and using federal financial aid to cover programs previously excluded.
- What Trump’s Election Means for College Students and Parents (Time Magazine, November 9)
With the election results in, parents and students are trying to decipher what changes are coming for their college savings plans. President-elect Trump has been vague on policy changes and how it might affect the way families are planning for education. In the short term, 529 plans offer a safe option for college savings, especially if you have an age-based portfolio. However, in the long term, it is likely to see the Trump administration make changes to student loans, repayment plans, college tuition and the role of for-profit colleges, which may result in different savings options.
- Parenting And Higher Education: How Can Parents Ensure A Child's College Dream? (Parent Herald, November 9)
If seeing your child in college is a dream, then you need to start the planning process as early as possible. According to Hasan Tariq, almost 97% of families intend to send their kids to college but have not started planning how to pay for it. College savings plans, such as 529 plans, offer different options state by state, many of which also have tax incentives. Having conversations with your children about their expectations for college and researching different options will help lead the way for savings goals.
