Next year my D will move into her Sorority house which is on campus. Simple question, can I use my 529 funds to pay for her Sorority Room & Board? I think the answer is yes but wondered if others have run into this. The cost for her room and board at the Sorority is $4300 per semester, her current dorm and meal plan is $5725 so the Sorority is lower.
The payments for housing will go to the Sorority Housing Corp so it won’t show on her University statement so I’m assuming as long as I have the statements showing how the money was spent that it still would be a qualifying expense for the 529.
“It’s worth noting that 529 plans can also be used to pay for rent for students who do not live on campus, as long as the student is enrolled at least half-time. Qualified room and board expenses for an off-campus student are limited to the allowance reported by the college in its “cost of attendance” figures.”
From a third party article. Hopefully a parent can drop in and confirm.
Sounds like you’ll need something showing the Cost of Attendance (“Budget”) from the school, which will include the 5725 figure as the “allowance”.
Yes, paying for room and board at the sorority is a 529 qualified expense, as long as the student is at least half-time, as Courtney points out.
The qualified amount is limited to the higher of:
a. The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.
OR
b. The actual amount charged if the student is residing in housing owned or operated by the school.
Thanks for the information. That’s what I was thinking but just wanted to get other opinions on if I was interpreting it correctly.