Improvements to the 529 platform could increase the number of low- and moderate-income families saving in 529s and make it easier for these families to build assets for education. These reforms include large initiatives, such as coordinating existing higher education tax credits and financial aid with 529s, as well as small initiatives to increase savings. This document contains several low-cost, simple reforms for 529s at the federal level. These would be important first steps for enabling more low- and moderate-income students to complete higher education.
Project: College Success
Newville, D., & Clancy, M. (2009, April). Five low-cost ideas to help families save for college (CSD Policy Brief No. 09-75). St. Louis, MO: Washington University, Center for Social Development, and New America Foundation.