Families can now use VT529 college funds for more expenses

Published: May. 25, 2022 at 4:19 PM EDT
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MONTPELIER, Vt. (WCAX) - Vermont families that save for higher education through the VT529 plan can now use the money for more things.

With the VT529, the state gives you a tax credit of 10% for the first $2,500 you contribute each year.

Now, Vermont legislators have made some changes in how those funds can be used, like paying down existing student debt.

“Now the Legislature has added language that allows you to use it for payments of up to $10,000 on your student loan,” said Scott Giles of the Vermont Student Assistance Corporation.

People who hold the account decide how the money is spent. And it can go to tuition, room and board, books, apprenticeships, and training in trades, so things like tools would qualify too.

You can learn more about the program Sunday at 7:30 a.m. on “You Can Quote Me.”

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