June 1, 2025

Can 529 Funds Be Used for Room and Board?

Young adult male carrying box of dormitory items with adult male in background529 Savings – Room and Board Included

It’s graduation season! If you have a child who is receiving a diploma this year, you as the proud parent deserve to be congratulated for a huge accomplishment. Soon, your newly minted graduate will likely be off to higher education in pursuit of a successful future.

But even if your child is just now learning the ABCs or working hard to master fractions, it won’t be long until you’re reaching that high school graduation milestone, too.

Wherever your child stands along the path to higher education, a Future Scholar 529 plan can help you meet the costs associated with attending a variety of higher education institutions: an eligible two- or four- year university, a technical college, a trade school, graduate school or even the cost of participating in a registered apprenticeship program. No matter what educational program your child chooses, it’s great to know that the funds in your Future Scholar 529 account can be used to pay for much more than just tuition and fees.

Does 529 cover costs beyond tuition?

Yes! South Carolina’s Future Scholar 529 Plan allows you to use your tax-free earnings to pay for a variety of costs associated with higher education. Does your child hope to become a world class chef? Your 529 funds can be used for required supplies in addition to tuition and fees at many culinary schools. Does your child dream of attending medical school? You can use funds to pay for medical school as well as books, equipment and a computer, as long as these items are qualified education expenses.

Does 529 cover room and board?

Yes! The cost of room and board is often the second largest expense a family incurs after tuition. You will be happy to know you can use your Future Scholar 529 funds to help pay for your child’s dorm room and meal plan.

Can you use 529 for off-campus housing?

Yes! You can use your 529 plan for off-campus housing costs as long as your student is enrolled at least part-time for the semester. In addition to off-campus rent, you can use your Future Scholar earnings to pay for groceries and utilities. Remember, your reimbursement for these costs must be equal to or less than your college or university’s cost of attendance (COA) allowance for room and board, as listed on the college’s website for that year. If your child’s off-campus room and board are higher than the college’s COA allowance, you will need to cover anything above the COA out-of-pocket.

With a Future Scholar 529 plan, the answer is yes!

Can it be used to pay for a registered apprenticeship? Yes! Are there eligible colleges and universities in other countries? Yes! Can friends and other family members contribute to my child’s account? Yes! Future Scholar provides so many “yeses” to beneficiaries and their families because it is designed to be a simple and flexible way to save for higher education.

Yes! to Tax-free Savings with Future Scholar

With Future Scholar, you get all the yeses and tax-free savings, too. As a South Carolina resident, you are eligible to deduct 100% of your contributions to your Future Scholar account on your South Carolina state income tax return. And while your tax-free contributions add up, any earnings on those funds are compounding. Through compounding, your gains have the opportunity to make even more – all tax free. When it comes time for your child to use those funds for tuition, room and board, or another eligible education expense, you’ll withdraw the money tax-free also! 

Future Scholar’s flexibility and amazing tax savings begin when you open an account. Let Future Scholar help you start saving today!