Qualified tuition refers to the tuition required for enrollment or attendance at an eligible educational institution.

This typically includes tuition fees for undergraduate, graduate, or professional degree courses.

An eligible institution is generally any accredited public, nonprofit, or privately-owned for-profit college, university, vocational school, or other post-secondary educational institution eligible to participate in the student aid programs administered by the U.S. Department of Education (Title IV).

Depending on the state, a qualifying institution could also be an accredited K-12 school.

What Counts As Qualified Tuition

Qualified tuition is defined as the tuition fees paid to an eligible institution. The tuition fees are reported on the cost of attendance and are typically billed by semester or quarter.

For tax purposes, qualified tuition is the amount paid during the calendar year (January 1 through December 31), not the academic year.

For a 529 plan, qualified tuition must be paid to an eligible Title IV college or university, or an eligible K-12 school.

For higher education, there are no limits on qualified tuition to be withdrawn as an eligible expense.

For K-12 education, only $10,000 per year can be used as a qualifying expense, and only if your state allow it. Not all states allow this. Make sure you check out guide to using a 529 plan for K-12 expenses here.

What's considered a non-eligible institution?

Any school or college that is not Title IV eligible is non-eligible. This mainly applies to some trade and vocational schools. It also applies to most Montessori schools and preschools. This can also apply to career training programs.

If you need financial aid for a non-eligible institution, you have to look at special private loans for trade school or career training.

People Also Ask

What Expenses Are Considered Qualified Tuition?

Only tuition fees are considered qualified tuition if paid to an eligible institution.

What If I Pay My Tuition In Installments?

It doesn't matter if you pay your tuition in installments. Qualified tuition is simply the tuition fees you pay.

Are Room And Board Considered Qualified Tuition Expenses?

No, room and board are NOT considered qualified tuition. However, they may be a qualified education expense depending on your enrollment status.

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