This bill amends the Nebraska Revised Statutes to enhance the Nebraska educational savings plan trust by introducing new terms such as "recognized postsecondary credential program" and expanding the definition of qualified education expenses to include payments for these programs and qualified education loan payments. It allows trust funds to be utilized for recognized postsecondary credential programs, thereby broadening the range of educational expenses covered. The bill also clarifies the responsibilities of the State Treasurer as the trustee, including the authority to enter into agreements with recognized programs and manage funds effectively. Contributions to the trust can be made in cash, and until January 1, 2029, funds are restricted to eligible postsecondary institutions or recognized credential programs, with a future shift to include elementary and secondary schools.

Additionally, the bill establishes the Education Savings Plan Expense Fund, funded by program fees, to cover costs related to the educational savings plan trust and other associated expenses. It mandates annual reporting by the State Treasurer on fund transfers to the budget division and the Legislative Fiscal Analyst. Significant changes include allowing remaining funds in a participant's account to be used for qualified education loan payments for siblings of the beneficiary upon graduation from an eligible institution or program. The bill also clarifies that payments for qualified education expenses will be owned by the educational institution or program at the time of payment and expands eligibility for the educational savings plan to both resident and nonresident participants, recognizing the portability of funds for various educational institutions and programs starting January 1, 2029.

Statutes affected:
Introduced: 77-1416, 77-1417, 77-1419, 77-1420, 77-1422, 77-1427
Final Reading: 77-1416, 77-1417, 77-1419, 77-1420, 77-1422, 77-1427