Postsecondary education tuition – Regardless of the school your child chooses to attend, your 529 savings plan funds can be used toward tuition as long as the school is eligible for federal student aid (see Qualified Tuition Expenses below). The same is also true for graduate school and even some schools abroad.

Living on or off campus – As long as your child is enrolled in a degree or certificate-seeking program at least half time, room and board on campus is considered a qualified expense. For those living off campus, the cost of rent and utilities up to the school’s allotment is considered qualified, but any amount above the allowance could be subject to taxes.

Academic fees – Additional fees such as technology or lab fees are qualified expenses. Activity fees for sports or organizations, however, aren’t eligible.

Books and supplies – In addition to textbooks and class-specific materials, school and office supplies, such as notebooks, pens, pencils, etc., are also covered expenses.

Computers – If the school doesn’t supply your student with a laptop or desktop computer, purchasing one on your own is considered a qualified expense. This benefit also extends to peripherals such as printers.

Specialized software – Educational or professional software required to complete coursework also qualifies. For example, design software would be eligible for a student completing a graphic-design degree.

Internet access – Internet access is a covered expense for students who live off campus. However, beware of bundling: cable and phone costs may not be covered.

K–12 schooling – You can use up to $10,000 of funds per student each year toward private or religious K–12 tuition in most states ¹ (be sure to check if your state complies with this qualified expense).

Student-loan repayment and apprenticeships –In recent years, use of 529 funds has been expanded to include qualified student-loan repayments² (with a maximum lifetime limit of up to $10,000), as well as qualified apprenticeships and associated fees.³