What if my child gets a full or partial scholarship? What happens to my Private College 529 Plan funds?
If the beneficiary receives a partial scholarship, you can still use your certificates to cover the remaining tuition costs. If the beneficiary receives a scholarship that covers all or part of the cost of qualified higher education expenses, you can withdraw an amount up to the value of the scholarship without penalty or additional tax. Earnings that are refunded due to a scholarship are taxable income but are not subject to the 10% additional federal tax on earnings. You can also change the beneficiary to another qualified family member or even yourself.
