Greiner Lauds Passage of Bill to Strengthen College Savings Rules
6/2/2014
HARRISBURG – The state House of Representatives today voted to approve legislation, House Bill 2202, sponsored by Rep. Keith J. Greiner (R-Lancaster) that would enhance the ability of families and individuals to save money for college and other accredited institutions of higher learning.

In 2006, Pennsylvania created the Tuition Account Programs and College Savings Bond Act which provided a tax deduction for individuals who contribute to a college savings plan. This deduction is allowable regardless to which college savings plan the individual chose to contribute.

“As a Certified Public Accountant, I have carefully reviewed these provisions so that this legislation builds on the benefits of that law,” Greiner said. “I am pleased my colleagues agreed with these ideas and overwhelmingly voted in favor of my bill, which now moves to the Senate for further consideration.”

Specifically, while Pennsylvania-sponsored college savings plans are protected from creditors, Greiner’s legislation would extend this protection to any college savings plan a Pennsylvania family has chosen, regardless of the sponsoring entity.

In addition, currently only the Pennsylvania-sponsored college savings plans are excluded from state-funded student loan and aid eligibility determinations. Greiner’s measure would expand this to exclude assets in any college savings plan from student loan and aid eligibility determinations for any programs administered by an agency of the Commonwealth of Pennsylvania. The bill also contains added protections from the state inheritance tax.

This makes it easier for a student to apply for state and federal financial assistance because the money they have spent years saving for college will no longer push them over the threshold of income eligibility for that aid.

“College costs have risen significantly in recent years across the nation at public and private colleges where many Pennsylvania families send their children,” Greiner said. “Pennsylvania families need these updates and enhancements made available to protect their hard-earned college savings accounts.”

Representative Keith J. Greiner, CPA
43rd Legislative District
Pennsylvania House of Representatives

Media Contact: Charles Lardner
717.260-6443
clardner@pahousegop.com  
RepGreiner.com / Facebook.com/RepGreiner
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