At Sewickley Academy, a private school in Pittsburgh, families have yet to ask about the changes to 529 plans.
While the Tax Cuts and Jobs Act is still very new, "my initial reaction is, I'm anxious to see how it plays out," said Brendan Schneider, Sewickley's director of advancement.
"With the new tax bill, families may want to reexamine their strategies to pay for college," said Joe DePaulo, the CEO and co-founder of College Ave Student Loans.
Families now have the option to use up to $10,000 in annual tax-free 529 plan withdrawals to cover those early educational expenses. "That's a significant change to how 529 proceeds can be used and may affect both short- and long-term education budgeting decisions," DePaulo said.
Still, it's an option that mostly affects affluent families, Sewickley's Schneider added. "If you start funding monthly from when your child is born, would you want to pull $10,000 out to pay for school when the child is six?"