With the amount of student loan debt still rising and with the rise of AI, Generation Z is looking at all their options for education after high school, including trade and specialty schools, certificate and credential programs, community colleges, in addition to four-year universities and colleges.
Many are opting to attend schools specializing in career and technical education. This is reversing a decades-long trend for a four-year college education. Why are trade schools gaining popularity? Gen Z students want to reduce their need for student loans, while securing a full-time position in industries that need new workers entering that field. Also, with the rise in AI, entry-level positions can be harder to find. With these schools’ close connections to professional trades, students opting for technical education may graduate with a full-time, well-paying job already lined up.
If you have been saving in Ohio 529 CollegeAdvantage for your child’s education, remember your account can be used for whatever comes after high school, including trade, technical and specialty schools, community colleges, certificate programs, four-year universities and colleges. So, if your child chooses to further their education and attend a trade school or certificate program, you can use your 529 account to pay for qualified costs there.
Ohio 529 isn’t just for four-year programs
You can use the funds in your Ohio 529 Plan almost anywhere you are comfortable sending your child and your money. 529 plans can be used at any federally accredited educational institution, which is a post-secondary school that accepts federal financial aid. If you want to confirm that the schools your child is interested in attending — whether vocational, two-year, four-year, and certificate or credential programs — accepts federal aid, then do a search to see if the institutions have a Federal School Code on the Free Application for Federal Student Aid (FAFSA). If the schools do, then you can use your 529 funds there.
Ohio 529 and apprenticeships
If your child is interested in an apprenticeship, your 529 funds can pay for qualified costs such as fees, textbooks, supplies, and equipment like required trade. The apprenticeship program must be registered with the Secretary of Labor’s National Apprenticeships Act to use a 529 plan withdrawal. Interested parties can check the U.S. Labor Department’s search tool to confirm that a program is eligible.
The State of Ohio also wants to help interested students find their perfect apprenticeship opportunity available throughout Ohio. ApprenticeOhio has an interactive map and database of apprenticeship opportunities across Ohio There are 480 active sponsors and 369 active apprenticeship occupations to search through.
If your child is also interested in earning an associate degree, there are apprenticeship programs where participants earn credit towards an associate of technical studies degree through Apprenticeship Pathways. ODHE links apprenticeship programs with local two-year community colleges so participants can also earn a technical associate’s degree. Recent apprenticeship expansion grants have also increased the number of available apprenticeship programs at Ohio community college campuses.
Ohio 529 and trade schools
In Ohio, there is also a robust network of trade schools, known as Ohio Technical Centers (OTCs). According to the website, “Ohio Technical Centers (OTCs) are an association of independently operated career-technical institutions that offer adult education programs tailored to meet the specific needs of local communities. These centers play a vital role in enhancing the job skills and professional competencies of Ohio’s workforce. With 50 centers across the state, OTCs provide adult learners with the training and credentials required for the most in-demand jobs, offering a direct pathway to employment and career advancement.” Check out the OTC website to learn more about the many trade, technical, and vocational programs that Ohio offers.
Ohio 529 and community colleges
Besides trade or specialty schools, community colleges can also be an excellent choice to continue an education after high school. Usually lower in cost than a four-year program, your child can take required core classes that will transfer to other schools or explore different courses in their search for their dream profession. Your student can earn an associate degree and use the community college as a steppingstone to a four-year degree. Either way, a 529 plan can cover qualified high education expenses required to attend these schools.
Ohio 529 and certificate, credential programs
Your Ohio 529 account can now pay for post-high school certificate and credential programs. Credentialing costs for continuing career education such as tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary in a recognized postsecondary credential program are also now considered qualified expenses. There are prerequisites that the credentialing program must meet to use 529 funds. Please consult a financial professional, tax advisor, or the IRS regarding the applicability of these K-12 expenses expansion to your personal situation.
For an in-depth review of the criteria that a credential program must attain before a tax-free 529 withdrawal can be used for it, please read this article.
Ohio 529 can be used nationwide
While you may have saved in Ohio 529, you can use your funds at both Ohio schools and schools nationwide. 529 plans can be used across the United States at any accredited post-secondary school that accepts federal financial aid.
Higher education takes many forms. While there are many educational paths for your children, one thing is certain: Ohio's tax-free 529 Plan is the simple way to help. Your savings grow tax-free and stay tax-free when used for qualified higher education expenses. No matter what kind of education your children pursue after high school, Ohio 529 makes it simple to start saving for it.
Since 1989, Ohio 529 CollegeAdvantage has been helping families nationwide save for their children and grandchildren’s education after high school, while enjoying the advantages of tax-free earning, tax-free withdrawals, and a state income tax deduction for Ohio residents. Learn, plan, and start for as little as $25 today at CollegeAdvantage.
This article was originally posted in June 2020 and has been updated to reflect new information for 2026.
