In today’s day and age computers and higher education are more common aspects of life than ever before. Whether it is community college, trade schools, or traditional four-year colleges and universities, people have been attending higher education facilities in record numbers, particularly among the Millennial and Gen-Z generations.
Since 1996, there has been a savings plan that is designed to help parents, guardians, and others put money aside to help pay for future education. The plan is called a 529 Plan, in reference to its guidelines as explained in Section 529 of the Internal Revenue Code, and they are sponsored by states, state agencies, and educational institutions.
The ins-and-outs of 529 Plans are rather technical, but essentially there are two types of plans: Prepaid Tuition Plans and Education Savings Plans. Pre-Paid Plans have rather strict rules on how the money saved can be spent, rarely allowing it to be used on any educational expenses beyond tuition itself.
Education Savings Plans can be used differently, covering multiple items that fall under the umbrella of “Educational Expense”. For example, an Education Savings Plan can be used not only for tuition, but also for the required (and only the required) textbooks for college classes. Under The Tax Cuts and Jobs Act of 2017, there were some changes made to Educational Savings Plans that even allowed for 10,000$ to be used for private school tuition of K-12 students. One key aspect of the 529 Education Savings Plan is also that it can be used on technology.
The Education Savings Plan, depending on state rules, regulations, and laws, can be used to cover things like a computer or peripheral devices, like a hard disc drive, if it is an educational necessity.
Recently at Carolina Data Recovery, we had a student customer. Their school projects, papers, and other educationally relevant material were stored on their laptop, but they did not have any kind of back-up. Under their state’s regulations, any school related necessity was considered a viable expense, so instead of paying out of pocket for data recovery, the 529 Plan holder pulled money from the plan to cover the cost. It was a smart usage of a program that can be incredibly beneficial to students.
Regardless of our customers’ status, whether a student or a working professional, we at Carolina Data Recovery are committed to ensuring each customer gets their data back, allowing them to keep working toward their goals.
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