New education law makes it easier for parents to save for kids’ college education

September 5, 2024 Brooklyn Eagle Staff

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SYRACUSE/NY STATE — GOV. KATHY HOCHUL SIGNED NEW EDUCATION LAWS regarding college savings and school districts to celebrate the mark of a new academic year. Legislation S.9701/A.10209 amends education law to classify payment of principal or interest on qualified education loans as well as rollovers of funds into Roth Individual Retirement Accounts as qualified withdrawals from New York State College Choice tuition savings accounts, known as 529 accounts. This will make it easier for people to save for their children’s college by expanding the eligible uses for remaining funds. This change aligns New York’s law with federal tax laws governing qualified educational expenses from 529 accounts. Two of the new laws cover school districts outside of New York City. State Sen. Iwen Chu (D-17) was a co-sponsor.

State Sen. Toby Ann Stavisky (D-11) said, “New York’s 529 College Savings Program does not currently align with Federal law which has been amended twice in the last five years. My legislation confirms New York statutes to the federal laws. As a result, it will be easier for students and their families to save for college and ultimately pay off student loans.”

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