OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

529 College Savings Plans

Floor Speech

Date: Jan. 26, 2015
Location: Washington, DC
Issues: Finance and Banking Higher Education

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Ms. FOXX. Mr. Speaker, paying for college is hard work, and it is getting more difficult as tuition and fees continue to increase at rapid rates.

Fortunately, American families have an investment tool known as a 529 plan to help them save for their child's college education. Since 2001, students have been able to withdraw earnings from these plans tax free if the funds are used to pay for qualified higher education expenses.

It was disheartening to learn last week that President Obama now wants to tax those withdrawals and treat the earnings as student income, which would hurt a child's chances of receiving financial aid. With student loan debt surpassing credit card debt, it is incredibly irresponsible of the President to take away this valuable tool that millions of American families use to save for college.

House Republicans will fight this attempt to raise taxes on hardworking American families. We want to encourage, not discourage, families from investing in their child's future.

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