EDITORS' CORNER
‘The route to a successful career does not have to take you through college,’ expert says
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.
Furthermore, no one knows what higher education will look like in 15 or 20 years – it is possible young adults will pursue a mixture of certifications and on-the-job training instead of college.
It is possible higher education will face a reckoning due to declining enrollment and political pressure and refocus itself on exploring the truth and promoting open debate. Any number of things could happen with education in the coming decades, which no one can predict with perfect accuracy.
Thankfully, then, parents and students will now have the flexibility they need to pursue the best path for their own goals and interests.
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IMAGE CAPTION AND CREDIT: A male student in an auto repair class; Allison Shelley/Complete College Photo Library
