These are all qualified expenses.”įor example, nursing students are required to pay fees associated with their clinical work-sometimes hundreds of additional dollars-and fees for specialized medical equipment. “But specific courses may have additional technology or resource fees associated with them that may not have been anticipated. “There are mandatory fees a school will charge that all students, regardless of their course of study, will pay,” explains Gorrell. Parents can also use 529 savings to pay for fees, which can be significant, says Timothy Gorrell, executive director of the Ohio Tuition Trust Authority, which manages Ohio’s 529 plan, CollegeAdvantage. Room and board, books, computers, and other supplies are all qualified expenses. “The short answer is you can pay for anything that is required by the college and included in their cost of attendance,” says Charlie Donaldson, founder of College Bound Coaching, which helps families with college funding.
But there are many other expenses that qualify, too. Of course, 529 savings can be used for college tuition. Many parents worry that they won’t be able to save enough for college, but is it possible to have too much saved? What if a child decides not to go to college, or they earn a lot of scholarship money? Not to worry: It turns out that college 529 plans are incredibly flexible if you know the 529 plan rules. Ways to Save For College: 529 Accounts Are A Smart Savings Strategy