New Bill Expands 529 Plan Funds to Transportation, Parking
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.
