<p>I am using a state 529 plan to cover tuition, fees, R&B, etc. at my daughter's university. It should be okay for the remainder of her undergrad if all goes well.</p>
<p>However, she is considering a semester abroad. It is a program sponsored by her university, and registered through them, but I read somewhere on CC that study abroad programs are not considered eligible expenses for the purposes of using 529 funds. Does anyone have experience with this? If the payments are made to her current university (then presumably sent to the abroad U) is that okay for 529 rules? What about room & board? I couldn't find a lot in the Study Abroad forum on this situation -- sorry if I didn't search enough!</p>
<p>I suppose I need to ask her current school how this is viewed. Worst case I would have excess funds in her 529 upon graduation that can be moved to her sister's account (a good problem to have I guess) and that we would have to pay that semester from other funds/sources.</p>
<p>Can the wise folks on this site give me some guidance? Thanks much!</p>
<p>Yes, the IRS Pub 970 defines “eligible education institution” as eligible to participate in programs administered by the US Dept of Education. I suppose my question was geared more towards payments made to the US-based university for subsequent remittance to the non-US university. I am new to the study abroad program. </p>
<p>I respect that federal grants / student loans might not be eligible to be disbursed to non-US universities (not applicable in our case), but are 529 assets treated the same way?</p>
<p>If payment is made to the US institution, 529 is fine to be used…they will be the ones sending you the year end tax info to match up with the 1099T the 529 will send you…</p>
<p>Not sure if this applies if the student attends a study abroad program not affiliated with a US home school, but I’m sure someone will post.</p>
<p>I used my D’s 529 for her study abroad. It was billed through her US university, and her financial aid was also applied. The 529 money can not be used for travel expenses to the study abroad or once she is at the abroad location, as far as I could tell. Her bill for the program did cover tuition and room and board at the study abroad.</p>
<p>In my understanding the key is where you pay the fees. If you pay it at your institution and the college has an agreement with the foreign college, you should be OK. However, if you have to register at and pay the foreign college directly and your US university just transfers the credit, then it may not be OK. You may want to check on this.</p>