Can you use 529 funds if your student rents an apartment off-campus, or does it have to be a dorm?

[Anonymous]

Just curious if you can use 529 funds for cost of rent for apartment/housing off-campus for student to live if they are not in a dorm?

[Anonymous]

You can. You just can't use more money than what on campus housing would cost.

[Anonymous]

Every college will list online a COA - Cost of Attendence - you can use those values to make withdrawals from your 529 to cover off-campus expenses (lodging, food).

[Anonymous]

Also you cannot cover months when your kid is not enrolled (summer rent).

[Anonymous]

Based on our school's COA, we can only use around 7 months worth of rent from 529. Despite having funds in our 529, we have to pay 5 months out of pocket.

[Anonymous]

Yes for example, my kid’s average school room and board is $10500, but his rent is $12000 for the school year. I’m taking out $10,500 in gradual increments every few months to cover his rent, paying directly from the 529 to my checking account. Then I pay the rent (auto debit) from my checking account. I will have to float the difference and pay from other sources.

In the Virginia 529, there is an option to withdraw to the school directly (for tuition) or withdraw to the account owner. I assume it’s the same for other state 529s.

[Anonymous]

You can pay for rent up to COA, utilities and WiFi plus a food allowance up to the COA.