The first round of tax cuts that went into effect this year allowed people to dig into their 529 plans before college to pay for kindergarten through 12th grade private school tuition.
While much of the economy has healed since the Great Recession, student loan debt has worsened.
Now, in the second round of tax changes, the list of things the tax-advantaged education accounts can be used for might grow longer still.
Home schooling, apprenticeship fees and, most notably, student loans, could all be paid for with 529 plans, according to an updated version of what will be included in so-called Tax Reform 2.0 provided on Thursday to Republicans by the House Ways and Means Committee.
"Anything that provides families with more flexibility in how they use 529 plans would be beneficial," said Mark Kantrowitz, publisher of savingforcollege.com.
The change is likely to increase awareness about the accounts, he said. The advantages of the plans are notable: If you start saving at your child's birth, Kantrowtiz said, about a third of the college goal will come from earnings. However, less than one-third of people understand their purpose.