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Association praises educational provisions of stimulus package

on Monday,February 16,2009 22:02

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An industry association has issued a statement in which it stresses the importance of new provisions to facilitate students'' financial access to technology in the newly passed stimulus package.

The College Savings Plans Network (CSPN) underscored the significance of enhancement to Section 529 college savings plans that will allow families to use money from the plans to purchase computers and related technology.

Before the passage of the stimulus package, money from these types of savings accounts could only be used to purchase such technology if it was required by the specific degree program or course.

"Given the increasing technological needs of today''s students, it makes sense for computers to be allowed as a qualified expense under Section 529 plans," says Jackie Williams, executive director of the Ohio Tuition Trust Authority and spokesperson for CSPN. She adds that this is because computer skills are critical for success in academia as well as in the labor market.

CSPN was founded in 1991 as an affiliate of the National Association of State Treasurers (NAST). It is a non-profit association representing states who administer Section 529 college savings and prepaid plans. The organization''s primary purpose is to educate families about the importance of saving for college, and it monitors federal activities and promotes legislative and regulatory changes to enhance Section 529 plans.
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