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Higher Education Changes in Recent Years

Tina A. Myers, CFP®, CPA/PFS, MTax, AEP®, Director, Planning and Advice Center

<p>Higher Education Changes in Recent Years</p>

The Key Wealth Institute is a team of highly experienced professionals representing various disciplines within wealth management who are dedicated to delivering timely insights and practical advice. From strategies designed to better manage your wealth, to guidance to help you better understand the world impacting your wealth, Key Wealth Institute provides proactive insights needed to navigate your financial journey.

There have been a number of recent changes to provisions that affect higher education. Changes include such things as borrowing limits for students and parents under federal loan programs, streamlined student loan repayment plans, stricter rules on the ability of borrowers to pause student loan repayment, the promotion of workforce training programs, expanded qualified expenses for 529 plans, and an increased endowment tax on wealthy colleges and universities, among other items.

Key Takeaways

  • Stricter rules on student loan repayment and limitations on borrowers’ ability to pause payments.
  • Promotion of workforce training programs to align education with employability.
  • Expanded qualified expenses for 529 plans, making education savings more flexible.
  • Increased endowment tax on wealthy institutions, which may indirectly affect financial aid availability.
  • Enhanced scrutiny on “gainful employment” and career outcome reporting, signaling a push for transparency in how well institutions prepare students for the workforce.

 

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