Are these trial balloons, payback, and or other means when these type of things get released? Seems like it always happens, even under previous administrations.

Vandy, I think this is an outstanding idea to treat contributions to 529's just like 457's, 401's, etc. but I don't think the status quo in Washington want this. If you go back and research the Coverdell Legislation it may give some insight on why this is so restrictive. Coverdell even restricts how much to contribute annually. I"ve had my 529 now for 3 years and my son is a Junior in college and my advice is to select your allocations conservately likes bonds, etc. and not stocks because I lost over $3,000 last fall with the "crash" which is almost a semester.

I think that the status quo just wants those who can afford to be able to attend college so they can keep that American "caste system" in place but a tax savings 529 would be a great way to provide incentive for parents to fund a college education and you should submit that as an idea on this site.

Good luck on planning for college.

Gil3 I totally disagree with this education is a right and not a privilige and that certain students should get preferential treatment. My experience is that the entire AP system in high school is politically driven and creates "grade inflation" and some colleges are now seeing this. My son was not an AP student in high school but got a chance to enter a college and is now an Honor Student so he's a good example of an average student being given a chance. Sometimes college students are late bloomers and do better in college than high school.. What we need is a redirection of research grant resources back to curriculum instruction, reallocation of endowments back into curriculum instruction, an increase in Pell Grant funds and an increase in elgibility to allow more moderate income students to have access to a college educatiion. In the long run this will help society overall and assist the U.S. in its global competition.

This subject hits home with me. I am a parent of a college student who does not qualify for Pell Grants nor Federal Financial aid and am struggling to meet the continously rising cost of tutiion, room and board, books, etc. in a normal public college. I lost over $3,000 in my college 529 Plan during the "recent crash" which equals about 15 semester hours and can't sleep at night trying to figure out how I'm going to get this back. College costs is rising too much and I think the big way to resolve this are: 1.) increase both the amount of Pell Grants available and to include more middle income family elgibility