Trump is changing how people pay for school. Here's what you should know

By Tami Luhby, Sunlen Serfaty, Curt Merrill and Tal Yellin, CNN

Published June 1, 2026

President Donald Trump’s massive tax and spending cuts package, the “big, beautiful bill” passed by Congress last summer, has brought and will continue to bring changes to paying for education. Many of the student loan provisions kick in on July 1. Other measures take effect at different times. Here’s a guide to make sure you’re ready.

Explore how paying for school could change for you

K-12

Current borrowers

Future borrowers

You may be able to participate in a newly created national school voucher/scholarship program

Start date

January 1, 2027

Details

Although popularly described as a “voucher program,” this provision is not so straightforward. When filing taxes for 2027, interested taxpayers will need to claim a credit of up to $1,700 for qualified donations to approved organizations that support scholarships for K-12 private school education. Essentially, this first-of-its-kind program will allow families to use public funds to offset some of the costs of private or religious schools.

Caveats

The use of this is capped by income and availability varies by state. Not all states have signed up.

The benefit is available for “eligible students,” which is defined in the law as a student “eligible to enroll in public elementary or secondary school” who is part of a household with an income that did not exceed 300% of the area’s median gross income in the calendar year before applying for the program.

Learn more

School Choice (whitehouse.gov), Department of Education Fact Sheet (PDF)

You may be able to draw more from a 529 savings plan

Start date

July 4, 2025 (for expanded eligible expense items); January 1, 2026 (for increased withdrawal limits)

Details

Parents are now able to use more money from 529 college savings plans for K-12 education expenses including tuition, instructional materials, tutoring and some standardized test preparations. The amount parents can withdraw for K-12 expenses, per student, is doubled from $10,000 to $20,000.

Beyond increasing what can be used for K-12, the law expands the use of 529 funds for other costs, including:

Tuition, books, and fees related to professional licensing programs
Required continuing education courses to maintain licensing or certification
Some education-related therapies
Support for diagnosed learning differences, included ADHD
Some qualifying credentialing and vocational programs

Caveats

Each state administers its own 529 plan. Many states are moving to conform to federal rules. But be sure to check in with your specific state to see if your withdrawal will remain tax-free at the state-level.

Learn more

College Savings Plans Network (.org)