College Savings Just Leveled Up
College savings usually happens quietly, a little money tucked away while tuition bills remain comfortably distant. Georgia just gave families considerably more room to keep doing it.
Two changes to the state’s Path2College 529 Plan took effect this summer, and both land squarely in the practical-money category. The maximum account balance more than doubled, while a state administrative fee disappeared.
That combination matters beyond household budgets. Georgia needs workers with a range of credentials, from technical training to advanced degrees, and the state’s 529 program is built to cover more educational paths than its “college savings” label might suggest.
More Room, Fewer Fees
Under Senate Bill 556, signed in May, the maximum Path2College account balance increased from $235,000 to $550,000. Meanwhile, the Georgia Higher Education Savings Plan Board waived the state administrative fee.
According to the Governor’s Office announcement, that waiver makes Path2College the nation’s lowest-cost college savings plan.
For Georgia families, the bigger story may be flexibility. Accounts can be opened with as little as $25, and contributions can grow tax-deferred. Withdrawals for qualified education expenses are tax-free, while Georgia taxpayers may also qualify for a state income tax deduction on contributions. Joint filers can deduct up to $8,000 annually per beneficiary, while single filers can deduct up to $4,000.
The plan also offers multiple investment options for different timelines and risk preferences. That makes it usable for families starting when a child is born as well as those getting serious about saving closer to graduation.
College Isn’t the Only Destination
The money has more places to go than a four-year university. Qualified uses include vocational and technical education, graduate programs and certain registered apprenticeships. Funds can also cover eligible K-12 expenses and qualified student loan repayment, subject to applicable rules and limits.
That range is particularly relevant to Georgia’s workforce conversation. Preparing for education expenses can mean saving for an undergraduate degree, but it can also mean helping someone acquire the technical training or credentials that move them into a career.
The program received national attention in 2025, when Morningstar recognized the Georgia Higher Education Savings Plan Board for its commitment to education savers and leadership.
For families, though, the appeal is less abstract: more room to save, lower costs and more ways to use what they’ve put aside. Future tuition may still inspire a hard swallow, but Georgia families now have a little more breathing room before the bill arrives.
Find more resources for education and career planning in the Georgia Business Journal college and career planning services directory: https://gbj.com/college-career-planning-services
