Senator Collins Urges Rejection Of Plan To Make Saving For College More Difficult

In a speech on the Senate floor today, and in a letter sent to leaders of the Senate Finance Committee, U.S. Senator Susan Collins urges rejection of President Obama’s proposal to alter the 529 College Savings Plan. Senator Collins says the President’s plan to begin taxing the earnings of 529 College Savings Plan accounts would, instead, make it more difficult for hardworking parents to save and plan for their children’s education. The 529 College Savings Plan allows parents to make contributions to a tax-advantaged account with after-tax dollars from their paychecks. These contributions grow over time and have an enormous impact on what parents are able to save to help their children pursue an education. Changing the tax rules not only breaks a promise to parents who are working hard to provide opportunities for their children, but it also increases the burden of debt a student will face at a time when rising student loan debt is a national concern. In her letter and in her speech on the Senate floor, Senator Collins said, “Rather than help American families meet the onerous cost of a college education, this new tax would greatly diminish the benefits of a law that is helping millions of parents plan for their children’s futures. The President’s proposal undermines the very values that we should be promoting – families making sacrifices today in order to better provide for their children tomorrow."