Bridging Dreams and Opportunity: The Role of 529 Savings in a Scholar’s Success

Starting high school is a major transition for any teenager, but for Wayde Sali, it was especially difficult. Having emigrated from the Philippines, Sali entered high school as a junior in 2022 after his parents moved to America in search of better economic opportunities. Beyond the usual hurdles of high school, Sali had to adapt to an entirely new academic system, forge new friendships, and leave behind everything familiar.

By 2024, Sali not only graduated from high school but also earned the distinction of becoming a Neal Kocurek Scholar. Now a sophomore at Austin Community College, he is pursuing a nursing degree and participated in the 529 College Savings Pilot, a forward-thinking initiative aimed at addressing scholarship displacement by accelerating access to funds and providing students with the flexibility to use their awards beyond tuition and books.

St. David’s Foundation proudly operates the Neal Kocurek Scholarship Program, the largest health care scholarship initiative in Texas. By cultivating a thriving, diverse, and community-rooted healthcare workforce, the Foundation strengthens the pipeline of professionals dedicated to advancing health equity across Central Texas. Over the past 20 years, the Foundation has disbursed over $27 million dollars of scholarship to students in Central Texas pursuing healthcare education. More than 850 scholarships have been awarded.

Eliminating economic barriers for students from marginalized communities to pursue financially stable careers in healthcare is central to their success. To address this, St. David’s Foundation, in collaboration with Students First Consulting, developed an innovative disbursement pilot using 529 college savings plans that offer a more efficient alternative to traditional checks and university payments. Partnering with Texas College Savings Plan, we achieved faster disbursements, reduced administrative burdens, and provided greater flexibility to meet students’ real-world needs.

Sali spent his formative years in Taguig, a bustling city east of Manila. Before turning 10, he was hospitalized more than 15 times for various health issues, from infectious disease treatment to airway clearance procedures. “Breaking the stigma that hospitals are frightening places has become one of my biggest motivations for pursuing a career in healthcare,” Sali shared. “I understand how intimidating hospitals can feel, especially when past experiences were painful or traumatic. In the future, I want to offer holistic, compassionate care and help patients feel at ease, ensuring they trust in the science-based practices that serve their best interests.”

Sali’s life was profoundly shaped by watching his mother, a dedicated nurse, navigate the frontlines of the COVID-19 pandemic at a clinic in the Philippines. “I watched her leave for the clinic before sunrise and return late at night, always prioritizing the well-being of her patients, even at personal risk,” Sali reflected. “Her unwavering grit amidst crisis inspired me to follow in her footsteps and give back to a community just as she did.”

In Spring 2024, Austin Community College announced free tuition and general fees for high school seniors in its service area. While this was welcome news, it also meant the College Affordability Plan would displace Sali’s scholarship from St. David’s Foundation. To address this, staff at the Foundation invited Sali to participate in the 529 College Savings Pilot. A 529 plan is a tax-advantaged savings plan for education for qualified expenses.

Scholarship displacement occurs when an external scholarship, such as the Neal Kocurek Scholarship, reduces other forms of student financial aid—including grants, loans, federal work-study, or additional scholarships. Institutions may trigger displacement by considering a student “over-awarded” if their total aid exceeds the school’s cost of attendance, which may not include all costs students may actually face, especially if they lack significant financial support from families.

Sixteen Neal Kocurek scholars were invited to participate in the pilot program and 100% of the students were satisfied with their experience using this approach, with most finding the flexibility of the pilot program especially valuable. Previously, Foundation scholarships could only be used for tuition, on-campus housing, meal plans and books, but now students can use those funds for qualified educational expenses such as food, gas, or off-campus housing.

The pilot prioritized students most affected by displacement—those who had never previously received funding or who relied on annual rollovers. By leveraging 529 accounts, the Neal Kocurek Scholarship Program unlocked an estimated $60,000 that would have otherwise remained inaccessible. This had a significant impact on the most vulnerable students. Currently, more than half of scholars receive funding through 529 plans, with a goal of 100% by fall 2026. 

Looking ahead, Sali dreams of attending medical school and specializing in either neurosurgery or as a Certified Registered Nurse Anesthetist (CRNA). The flexibility of the 529 savings account allows him to save part of his scholarship for future educational expenses. “One of the best changes during the pilot was the shift from paper checks to electronic transfers. It’s made receiving funds much safer and gives students like me peace of mind,” he said.

Before 529 accounts, scholars sometimes had to wait weeks or months to receive their scholarship. “The Foundation had built a ton of workarounds to try to get students’ money in terms of reimbursing them for things, which was super cumbersome and labor-intensive for the staff,” said Sarah Battersby, Founding Partner of Students First Consulting. “The 529 plan gives the Foundation a single mechanism to pay all its scholars. Students can choose to have ACH payments sent to their bank accounts. Now they can get their money within days.”

Caroline Reckart experienced at least two semesters of scholarship displacement because she’s also a recipient of the Army Health Professional Scholarship Program, which covers her tuition. Reckart is currently a student at McGovern Medical School in Houston, TX, where she is pursuing her MD.

“The 529 implementation has allowed me to receive my St. David’s Neal Kocurek scholarship and put it towards my cost of living, allowing me to live somewhere closer compared to what I could otherwise afford,” said Reckart. “I feel this disbursement method has continued to help me learn about fiscal responsibility, and I am thankful that I have options when managing my finances.”

Reckart can continue her studies with peace of mind and financial security. She’s always wanted to be a physician, ever since she was young and now, she’s on her journey to be a positive leader in the healthcare system.

“Some scholarship providers are much more restrictive with how students can use the money. Providers like St. David’s Foundation are really focused on financial flexibility for students, which is great,” said Battersby.

Students from the pilot program have learned to be fiscally responsible. Sali has learned to develop a rigid financial management system that prioritizes future goals while also meeting current financial needs. “With this new change in fund transfer comes a greater deal of personal accountability and smart money management.”

This spring, Sali will start his clinical rotations at ACC, and his mentor through the Neal Kocurek Scholarship Program, John Quyen Van, a registered nurse, provides valuable advice. “John is a great mentor! He has provided excellent advice that ultimately guides me as I navigate higher education and my eventual career paths.” In addition to the scholarship, students receive a wide range of support such as free mental health counseling, tutoring, professional mentorship and a close-knit community.

Sali expresses deep gratitude for the Neal Kocurek Scholarship Program, not only for its financial support, but also for the sense of belonging it provides. “The benefits go far beyond dollars. I’m part of a community that truly cares. The Foundation’s staff check in on us, organize events like movie nights and connect us with mentors. Being a Neal Kocurek Scholar has profoundly impacted my life over the past year and a half, and I am proud to be part of this Foundation.”