The Application FEES Act would allow families to use 529 college savings plans to pay for college application fees, which are currently not eligible expenses under these plans. The bill amends the Internal Revenue Code to add application fees to the list of qualified education expenses that can be withdrawn from 529 accounts without penalty or taxes. This change would benefit high school students and their families who are applying to higher education institutions, making it easier to cover the often-substantial costs of submitting multiple college applications. The bill takes effect immediately upon enactment and applies to all 529 distributions made after the law is signed. There is no new federal funding required, as the change simply expands what existing 529 account funds can be used for.
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