How The One Big Beautiful Bill Could Affect Your Child’s or Grandchild’s College Savings Plan

For parents and grandparents, saving for a child’s education has always come with both opportunities and trade-offs. Recent changes in the One Big Beautiful Act may shift that balance in new ways. What does this mean for your child or grandchild’s college savings plan?

The bill broadens how 529 plans can be used, extending support beyond college to include K-12 expenses, tutoring, or even certain workforce training programs. It also makes the ability to roll 529 funds into ‘ABLE’ accounts permanent and introduces new savings methods for younger children.

At the same time, changes on the borrowing side may add pressure. The new repayment rules extend timelines and alter forgiveness options, potentially increasing long-term costs. And for advanced degrees, the law now caps the total amount of federal loans available, which may not be enough for fields such as dentistry or medicine. Families may need to explore more creative funding strategies to fill the gap.

The landscape is changing, and thoughtful, informed planning has never been more important. The Kelly Group is here to help you understand the implications and chart a course that supports the goals most important to you.