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Other Ways to Pay

529 Plans for College: How They Work and What Changed Recently

Small stacks of coins on a dark table

How 529 plans work, what they cover, the K-12 limit rising to $20,000 from 2026, credential programs, the Roth IRA rollover and effects on aid.

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Plain-English guides to paying for college in the U.S., with current figures and no lender links.

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Topics

  • Financial Aid (4)
  • Other Ways to Pay (3)
  • Student Loans (3)

Key numbers for 2026–27

Maximum Pell Grant $7,395
Undergraduate Direct Loan rate 6.52%
Graduate loan limit, per year $20,500
Tax-free employer aid, per year $5,250

What changed in 2026

Official sources

  • StudentAid.gov: the FAFSA, your federal loans and repayment plans
  • IRS education credits
  • ReportFraud.ftc.gov: report scholarship and loan scams
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