Contributed by: Brooke Wiley
College planning often feels like a moving target. Rising costs, evolving tax rules, and questions about financial aid can make it difficult for families to know where to start. During our recent webinar, College Savings: The Hidden Benefits of College Savings Plans, Planner Bob Ingram CFP® sat down with John Scott of the Michigan Education Savings Program (MESP) to discuss how education savings plans have evolved and why they remain one of the most powerful tools available for families saving for future education expenses.
529 Plan Flexibility
A significant focus of the discussion was the flexibility of modern 529 plans. In addition to traditional qualified expenses such as tuition, books, computers, and room and board, families may now have options to use funds for apprenticeship programs, certain credentialing and certification programs, student loan repayment, and in some cases even Roth IRA rollovers for unused assets. With recent legislative updates to 529 plans, families have more pathways to utilize education savings in ways that support a student's academic and professional long-term goals.
Financial Aid
Financial aid was another topic highlight of the discussion. Many families worry that saving too much might negatively impact aid eligibility. While every situation is unique, 529 plans generally receive favorable treatment compared with other savings vehicles. Parent-owned 529 accounts, for example, typically have a limited impact on aid calculations.
Family Planning
The webinar also explored how education funding has increasingly become a multi-generational planning conversation. Grandparents, great-grandparents, and other family members often want to help support younger generations but may not know the most efficient way to do so. MESPs and other 529 plans can provide tax-advantaged gifting opportunities while allowing account owners to maintain control of the assets. For many families, this creates opportunities to support educational goals while also integrating broader estate and legacy planning objectives.
Start Early
A recurring theme throughout the presentation was the importance of planning early. While it may be tempting to delay saving when children are young, time can be one of the most powerful advantages available. Starting earlier allows contributions the opportunity to benefit from years of tax-advantaged growth and can reduce the pressure of trying to accumulate significant savings later.
Learn More
If you missed the webinar, we invite you to watch the replay.
If you are interested in continuing the conversion around being intentional with education planning, stay tuned for our second webinar in this education planning series, College Planning Made Easy, on August 27th, 2026.
Brooke Wiley is an intern at Center for Financial Planning, Inc.® She is a student at Michigan State University majoring in finance and minoring in financial planning and wealth management.
529 plans come with fees and expenses, and there is a risk they may lose money or underperform. Most states offer their own 529 programs, which may provide benefits exclusively for their residents. Please consider whether the state plan offers any tax or other benefits. Tax implications can vary significantly from state to state.