Question for the Money Doctors
Question submitted on Jan 11, 2018.
QuestionHow do I know which schools are covered if I open a 529 for my granddaughter? She currently resides in Philadelphia, but who knows later.
An eligible educational institution is a school offering higher education beyond high school. It is any college, university, vocational school, or other post-secondary educational institution eligible to participate in a student aid program run by the U.S. Department of Education.
This includes most accredited public, nonprofit and privately-owned–for-profit postsecondary institutions.
If you aren’t sure if your school is an eligible educational institution:
• Ask your school if it is an eligible educational institution, or
• See if your school is on the U.S. Federal Student Aid Code List.
TIP: A small number of schools, not on this list, may be eligible educational institutions. So, you may need to ask the school.
Additionally, starting in 2018, 529 plans can be used for up to $10,000 in expenses for tuition incurred at public, private or religious school, either elementary or secondary. This does not expire in 2025 as many of the provisions of the Tax Cuts and Jobs Act of 2017 do.
For additional information visit http://www.360financialliteracy.org/