Lincoln, NE— 1.6.22 — Today, Senator Megan Hunt introduced LB 835 to provide an option that could help relieve student debtors’ loan balances: the 529 NEST college saving plan. Currently, 529 plans allow families to contribute money to an account, which grows on a tax deferred basis and can be withdrawn tax-free if it’s used to pay for qualified education expenses, like tuition or textbooks. In 2019, the federal SECURE Act created new flexibilities for 529 college savings plans, including one that allows these plans to be used to make student loan payments. However, the state’s existing statute prohibits Nebraskans from utilizing the newly granted 529 options. LB 835 will permit 529 planholders to use account assets to pay up to $10,000 in student loans per beneficiary to help.