Is paying off a student loan a qualified higher education expense?
No. Q: Does my child have to attend college in Indiana? A: No. You can use the assets in your account toward the costs of nearly any U.S.-accredited public or private, two-year or four-year college nationwide. Q: What if my beneficiary decides not to go to college? A: If the beneficiary decides not to go to college, you have three options: 1. Stay invested in case the beneficiary decides to attend school later. 2. Change the beneficiary at any time provided that the new beneficiary is an eligible family member of the former beneficiary. 3. Withdraw the money for other uses. The earnings portion of a withdrawal not used for a beneficiary’s qualified higher education expenses is subject to federal and state income taxes and may be subject to a 10 percent federal penalty tax. Q: Where do I go for more information? A: Visit www.collegechoiceplan.com or call 866-485-9415 for more information on the direct savings plan. — CollegeChoice, www.collegechoiceplan.
No. Repayment of student loans is not considered a qualified higher education expense. Qualified expenses include only tuition, mandatory fees, books, supplies, and equipment required for enrollment or attendance; certain room and board costs during any academic period the beneficiary is enrolled at least halftime; and certain expenses for a special-needs student.
No. Repayment of student loans is not considered a qualified higher education expense. Qualified expenses include only tuition, mandatory fees, books, supplies, and equipment required for enrollment or attendance; certain room and board costs during any academic period the beneficiary is enrolled at least half-time; and certain expenses for a “special-needs” student.
