Nebraska Treasurer Spotlights College Savings Month

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Official release

Source material from Nebraska State Treasurer. The wording below is the issuer’s statement.

Nebraska Treasurer Spotlights College Savings Month

NEST 529 encourages families to plan for education and career-training expenses

September 04, 2026

Lincoln, NE

Nebraska State Treasurer Joey Spellerberg is spotlighting September as College Savings Month in Nebraska. With the cost of higher education continuing to rise, this month emphasizes the importance of supporting and encouraging students and families to plan for the future.

“As education and training opportunities continue to evolve, Nebraska families deserve flexible tools to help them prepare for what comes next,” Treasurer Spellerberg said. “The Nebraska Educational Savings Trust (NEST 529) offers a tax-advantaged way to save for a wide range of education paths — from colleges and universities to trade schools, apprenticeship programs, and now even recognized credential and certification programs. College Savings Month is an important reminder that preparing for future education expenses can begin at any time, and even modest, consistent contributions can be a meaningful part of that preparation.”

This College Savings Month, parents and guardians should take the opportunity to discuss how a NEST 529 Education Savings Plan account can help their loved ones reach their goals. Higher education costs continue to rise above the rate of inflation1 and extend beyond just tuition and board to include books, laptops, institution fees, and more. According to College Board, a non-profit organization that helps students navigate the path to post-secondary education, in 2025-26, the average yearly costs2 of higher education tuition and fees for a full-time student are as follows:

Public, two-year institution: $4,150 ($110 higher than in 2024-25)

Public, four-year, in-state institution: $11,950 ($340 higher than in 2024-25)

Public, four-year, out-of-state institution: $31,880 ($1,060 higher than in 2024-25)

Private, non-profit, four-year institution: $45,000 ($1,750 higher than in 2024-25)

Scholarships and grants can help offset education costs, but they may not cover every expense. Families may still need to plan for costs such as tuition, fees, books, supplies, technology, and certain room and board expenses. A NEST 529 Education Savings Plan account offers a tax-advantaged way to prepare for many of those qualified education expenses.

“As NEST 529 celebrates 25 years this year, College Savings Month is the perfect time to encourage families to begin saving and to build awareness of Nebraska’s state-sponsored NEST 529 savings plans,” said Rachel Biar, Deputy State Treasurer for Savings Programs. “Whether families are just beginning to save or already have an account, even small contributions over time can help them prepare for a child’s education and career goals.”

With no minimum deposit required to open an account and contributions that can be managed online, families can start saving at any time with a NEST 529 account. Account owners in Nebraska may be eligible for an annual state income tax deduction of up to $10,000 for NEST 529 contributions, or $5,000 if married filing separately3. Earnings grow tax free, and qualified withdrawals may be free from federal and state income taxes4, providing even greater savings potential.

Visit NEST529.com to learn more about the benefits of a NEST 529 Education Savings Plan.

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About NEST 529 Plans

A NEST 529 Plan is a tax-advantaged savings account for higher education expenses. Tax-advantaged savings include a Nebraska state tax deduction, tax-deferred growth, and tax-free qualified withdrawals.3 Account Owners in Nebraska are eligible for an annual state income tax deduction of up to $10,000 for NEST 529 Plan account contributions or $5,000 if married filing separately.4 NEST 529 College Savings Plans can be used for everything from four-year universities to two-year technical schools. Opening a NEST 529 Plan account doesn’t require a minimum deposit to get started, and contributions can be managed online. NEST 529 Plans give families the ability to start investing in their loved one’s future, so they can soar to their goals and become who they want to be as adults.

The State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through the NEST 529 Plan, are vetted and approved by the Nebraska Investment Council.

1 Source: Best Colleges "529 College Savings Plans Statistics" (January 2023).

2 Source: The College Board "Trends in College Pricing" (November 2025). Trends in College Pricing and Student Aid (2025)

3 Withdrawals used to pay for qualified higher education expenses are free from federal and Nebraska state income tax. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance; certain room and board expenses incurred by students who are enrolled at least half-time; the purchase of computer or peripheral equipment, computer software, or Internet access and related services, if used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution; certain expenses for special needs services needed by a special needs beneficiary; apprenticeship program expenses; payment of principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary (up to an aggregate lifetime limit of $10,000 per individual); and Qualified Postsecondary Credentialing Expenses. However, earnings on all other types of withdrawals are generally subject to federal and Nebraska state income taxes, and an additional 10% federal tax.

Nebraska law does not currently treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses: K–12 Expenses. If a withdrawal is made for such purposes, although it is a Federal Qualified Withdrawal, it will be treated as a Nebraska Non-Qualified Withdrawal and may result in the recapture of a previously claimed Nebraska state income tax deduction, and the earnings portion will be subject to Nebraska state income tax. Please consult your tax professional about your particular situation.

Beginning January 1, 2029, withdrawals used to pay K–12 Expenses are set to be treated as Nebraska Qualified Expenses, subject to the federal annual limitation (currently $20,000 per Beneficiary per taxable year).

4 Account owners may deduct for Nebraska income tax purposes contributions they make to their own account (and any other accounts they own in the Nebraska Educational Savings Plan Trust) up to an overall maximum of $10,000 ($5,000 if married, filing separately). Contributions in excess of $10,000 cannot be carried over to a future year. For a minor-owned or UGMA/UTMA 529 account, the minor is considered the account owner for Nebraska state income tax deduction purposes. The minor must file a Nebraska tax return for the year their contributions are made to be eligible for a tax deduction for their own contributions. In the case of a UGMA/UTMA 529 account, contributions by the parent/guardian listed as the Custodian on the UGMA/UTMA Plan account are also eligible for a Nebraska state tax deduction.

Jamie Karl

531-427-1752

Release text attributed to Nebraska State Treasurer. Consult the official publication for any subsequent corrections or updates.