Assemblyman Matt Slater (R,C-Yorktown) is proud to announce that his original proposal to allow New Yorkers to withdraw funds from 529 college savings accounts tax-free to pay for student loans has been signed into law. The proposal, introduced by Slater as (A.9276), was ultimately carried forward by Assemblyman John McDonald and passed with bipartisan support, receiving the Governor Hochul’s signature on September 5, 2024.

Slater’s proposal was brought to him from one of his constituents, Steven Kraus, and the need to alleviate the financial burden of student loan debt by providing New Yorkers with more flexibility in using their 529 savings plans. The proposal now allows families to utilize these tax-advantaged accounts not only for educational expenses, but also to address student loan repayments—further expanding the utility of these plans.

“I’m thrilled to see my original proposal be carried through by my fellow colleague, Assemblyman McDonald” said Slater. “This is a win for New York families who are struggling with the heavy financial burden of student loans and a testament to bipartisanship carrying significant proposals to the finish line.”

“I want to thank Assemblyman Matt Slater for listening to my concerns, bringing this important proposal to the forefront, and helping families like mine with student loan relief. It’s crucial for lawmakers on both sides of the aisle to come together in support of their constituents,” said Steven Kraus, a resident of the 94th Assembly District.