New Bill Expands 529 Plan Funds to Transportation, Parking
The Accessible College Campus and Expanded Student Savings Act would make college more affordable, its backers say.
Reps. Jennifer McClellan D-Va., and Linda Sánchez, D-Calif., have introduced legislation, the Accessible College Campus and Expanded Student Savings (ACCESS) Act, to allow 529 savings plans to be used for transportation and parking expenses related to the cost of attendance at eligible higher education institutions and apprenticeship programs.
The ACCESS Act would amend Section 529 of the Internal Revenue Code.
“As the cost of post-secondary education continues to rise, we must do more to improve affordability and reduce barriers to access for prospective students,” McClellan said in a statement. “Prohibitive costs for transportation and parking pose an undue financial burden on students pursuing their education. My ACCESS Act will empower students to use their 529 Savings Plan to pay for parking and transportation costs and improve accessibility for everyone, regardless of their socioeconomic status.”
The ACCESS Act has been endorsed by Virginia529, the College Savings Plans Network (CSPN), the Virginia Community College System (VCCS), the Virginia College Advising Network (VCAN), the Council for Independent Colleges of Virginia (CICV), the National Association of Independent Colleges and Universities (NAICU), and the College Savings Foundation (CSF).
Recent studies have found that transportation costs can account for almost 20% of a student’s cost of college if the student lives off-campus, Mary Morris, CEO of Virginia529 and chair of the College Savings Plans Network, added in the statemnt.
“This is significant given that more than 60% of full-time students attending a public four-year college and more than 95% of community college students live off-campus,” Morris said. “Opening up tax-advantaged 529 accounts to cover these expenses will be a significant boost to many families and savers.”
The Urban Institute “has estimated that transportation costs are 10% of a community college student’s expense budget, and this legislation will connect students to resources and help them overcome barriers to success and completion,” according to said David Doré, Chancellor of Virginia’s Community Colleges.
“Authorizing transportation expenses such as gas, car repairs, bus fare, and parking fees associated with commuting to class or an apprenticeship will be a valuable benefit for Virginia’s community college students, and will assist more students in achieving a life-changing credential or degree,” Doré said.