For years, traditional higher education (colleges/universities) have enjoyed a massive “early investment” advantage over trade and career-based schools. Namely, the 529 savings plan.
These plans, created decades ago by Section 529 of the IRS code, are “tax-advantaged” savings accounts that allow parents to contribute money to their kids’ college funds, beginning on the day of a child’s birth, essentially.
This means that with continued contributions, a parent could potentially save up enough money in the plan to send their kid off to college without having to take the big financial hit all at once.
But until recently, the plans didn’t simply cover college tuition. No, adding more to the “early investment” advantage that colleges and universities have enjoyed for decades, the plans covered a wide range of college expenses, including[1]…
- Tuition and Fees: College tuition and fees are covered.
- Books, Supplies, and Equipment: This includes required textbooks, lab materials, computers, and internet access.
- Room and Board: On-campus room and board expenses are covered (for students enrolled at least half time).
At least that’s what used to be covered.
But things have changed!
As part of the “Big Beautiful Bill” signed into law by President Trump, 529 plans now cover a lot more than college tuition, room and board and books.
They can now be used for trade school tuition and supplies!
You see, the 529 advantage that colleges and universities used to enjoy is no longer.
According to the New York Times, changes to the plan “allows the accounts to be used to help pay for a broader range of post-high school credentials, like certification in specialties like auto mechanics or food safety, and related expenses.[2]”
Now, there’s an estimated $500 billion sitting in 529 plans right now.[3] Meaning billions of dollars, potentially a hundred billion or more, will now be used to pay for trade school tuition.
And…
With a recent study, conducted before the changes to the 529 plan, showing 55% of Gen Z were considering a career in the skilled trades, the pool of potential students is enormous.[4]
However, changes to the 529 plan will likely create additional competition in the career-based education space.
Simply put, if you operate a trade school, there’s a high likelihood new schools will pop up and established schools will make a hard push for students with 529s.
Like we said earlier, there’s billions of dollars that could potentially flow into career and technical education (CTE) from these plans, and that money will be chased.
It’s why if you operate in the CTE space, you should immediately begin marketing your programs directly to prospective students, regardless of whether they’re beneficiaries of 529 plans or not.
And by directly, we mean directly. Not generalized social media posts. Not generalized tv or web ads… but direct, personal contact with the prospects themselves.
How, you ask?
Well, direct contact with prospects is what Conversion Media Group does.
You see, we speak with hundreds, sometimes thousands of prospective students who are interested in the trades, and we speak with them on the telephone!
Real people, real conversations.
Now, when a prospect shows genuine interest in your school and its programs, we can transfer the phone calls directly to your enrollment department, live.
Again, real people, real conversations. They’re called live transfer leads.
The best part about our live transfer leads is this: we only transfer the phone calls to your enrollment department when the lead shows genuine interest in enrolling.
Meaning, the moment you begin talking with them (directly), they’re already interested in what you have to offer.
We believe live transfers are possibly the single best way to increase enrollments. Period.
So, are you ready get started with CMG and our live transfer lead program? Are you ready to increase your enrollments?
Give us a call at 1-800-419-3201, (or click HERE) and we’ll get the ball rolling.
With up to $500 billion on the table, the time to take advantage of the 529 rule changes is now.
[1] 529 Basics | The Education Plan
[2] How 529 Plans Are Changing With Passage of Trump’s Policy Law – The New York Times
[3] $500 billion now available for trade schools, thanks to Trump budget | The College Fix
[4] Gen Z, Alpha Embrace Trade Schools More as They Sour on College – Newsweek