What A Tax Overhaul Could Mean For Students And Schools

    The House and Senate are working to reconcile their versions of a tax plan — but one thing is for certain: Big changes are ahead for the nation's schools and colleges. Let's start with K-12. There, Republicans from both sides of Congress generally agree on two big changes. Saving for private school Taxpayers can currently save money for college through a 529 plan, where earnings grow tax-free. Many states also offer deductions for contributions. In the proposals, Republicans want to let taxpayers use 529s to pay for K-12 tuition at private and religious schools, too. Families can already do that with a different plan — Coverdell Education Savings Accounts — but these have low contribution limits and aren't open to high-income Americans. The move to expand the 529 would dramatically increase who could use these plans and the money they could save. "I think the only taxpayers who will be in a position to benefit from the 529 change are very rich people," says Nora Gordon, an economistOriginal Article