Most (but not all) study-abroad program expenses can be funded through withdrawals from a 529 account. 529 distributions are tax-free if they are used to pay for qualified higher education expenses at a college or university that is eligible for Title IV higher federal education aid.
These higher education institutions will have a federal school code that can be listed on the Free Application for Federal Student Aid (FAFSA). There are more than 100 foreign colleges that are eligible for federal student aid.
You can use 529 plan funds to pay for study abroad expenses if the study program at the foreign institution is eligible for credit at the student’s US home institution, and if the foreign institution is eligible for Title IV federal student aid, which can be determined by looking for the federal school code.
In simple terms, your school has to give credit for the study abroad program, and the foreign college where you will be studying abroad must be eligible for financial aid.
For more details about the types of study abroad programs, compare the reviews sorted by country, program and duration to see how they can benefit your education. By creating a budget and savings plan for your international studies, you will be able to quickly fund your 529 plan and meet your goal.
Learn how to start saving with a 529 plan and watch your account grow.
