Whether you are traveling to France, or traveling to Germany, funding your experience is always a priority. Costs associated with studying abroad include tuition, program fees, airfare, housing, meals, transportation, travel insurance, passports, visas, textbooks, personal expenses, and travel or entertainment.
If you were wondering if your 529 education savings account can fund these costs, this article is for you!
Good news, assuming your study abroad institution is eligible for federal student aid, then your 529 can support your experience for qualifying expenses. Wait, what is a qualified expense?
Qualified Expenses:
- Tuition and mandatory fees
- Book supplies and equipment
- Room and Board
- Room and Board can be a qualified expense, up to the amount in which you would pay at your current college institution (in the U.S.)
- Example: If my room and board at UW-Whitewater was $2,000 last semester, then the 529 would cover $2,000 room and board when studying abroad (for the semester).
More Information about 529s:
- Your 529 grows tax-free
- Withdrawals to your 529 is tax-free (if it is a qualified expense)
- Many states offer tax deduction for 529 plans
- If the original beneficiary no longer needs the funds, the account owner can designate a new qualified beneficiary without tax penalties, if the new beneficiary is a family member