This is potentially helpful news for our clients with college savings accounts with My529. Please reach out to us if you would like to discuss.
Announcing the my529 Access Discover® Prepaid Card
529 college funds, in the cards!
For more than 25 years, 529 plans have been helping people save for the costs of higher education. However, a lot has changed since the inception of these plans in the late 1990s.
Tuition payments that were once made with paper and pen are now done almost entirely online.
Responding to a need for innovation, Utah’s my529 and Gift of College announce the my529 Access Discover® Prepaid Card.
The my529 Access Card provides a convenient way for account owners and beneficiaries to use money withdrawn from their my529 account to quickly and easily pay for books, food, and track college expenses.
“Until now, the focus across 529 plans has been helping families start saving early and automate their education savings over the long term. The my529 Access Card addresses the need to make education funds more accessible when the time comes to use them,” said Wayne Weber, Gift of College CEO.
The my529 Access Card is a prepaid card that is directly funded by withdrawing funds from the account owner’s my529 account.
The card can be used to pay for qualified education expenses, including books, supplies and computers required for attendance at eligible educational institutions.
Card payment technology makes paying for everyday purchases nearly effortless. The my529 Access Card will help account owners and beneficiaries streamline the withdrawal and payment process, and it will provide a simple way to maintain an accurate record of expenses in my529 accounts.
“Roughly $40 billion is withdrawn each year from 529 plans for higher education expenses. Families will now be able to access and track their my529 funds in a convenient way,” Weber added.
“We are excited to be part of this innovation to fully serve our more than 248,000 my529 account owners from the time they establish their accounts through their post-secondary education journey,” says Richard Ellis, my529 Executive Director. “The my529 Access Card meets our account owners and their 20,000 college students where and when they need their money.”