Colleges.
Does the beneficiary have to attend a school in Nebraska?
Which schools are eligible institutions?
Can the money be used for graduate school?
What if my child receives a scholarship?
What if the beneficiary does not finish or does not go to college?
Does this type of plan effect eligibility for financial aid?
Does the account guarantee my child's admission to college?
Does the beneficiary have to be a full time student?
Does the beneficiary have to attend a school in Nebraska?
No. Funds may be used at eligible schools nationwide and some foreign schools. (For eligible schools see below)
Which schools are eligible institutions?
Any school that meets accreditation criteria and is eligible to participate in Federal Financial Aid Programs is eligible. This includes institutions like vocational colleges, trade schools, junior colleges, public, private, professional, graduate and undergraduate colleges and universities and even some foreign institutions. To check if a school is eligible, visit the Department of Education Web site and input the name.
Can the money be used for graduate school?
Yes.
What if my child receives a scholarship?
Should a child receive a scholarship, you may request a withdrawal from the College Savings Plan of Nebraska up to the amount of the scholarship without incurring the 10% federal penalty tax on the earnings portion of the withdrawal.
What if the beneficiary does not finish or does not go to college?
There are many options:
- A new beneficiary may be named to the account. The new beneficiary must be a member of the family of the current beneficiary.
- The account may remain open, in the event they change their mind, the money will still be there for them to use.
- The account owner may close the account (the earnings portion of the withdrawal would be subject to income tax and 10% federal tax penalty).
Does this type of plan effect eligibility for financial aid?
The eligibility of the beneficiary for financial aid may depend upon the circumstances of the beneficiary's family at the time the beneficiary enrolls in an Institution of Higher Education, as well as on the policies of the governmental agencies, school or private organizations to which the beneficiary and/or the beneficiary's family applies for financial assistance. These policies vary at different institutions and can change over time. Therefore, no person or entity can say with certainty how the federal aid programs, or the school to which the beneficiary applies, will treat your account. However, financial aid programs administered by agencies of the State of Nebraska will not take your account balance into consideration, except as may be otherwise provided by federal law.
For more information on financial aid contact the EducationQuest Foundation at www.educationquest.org or call 1-800-666-3721.
Does the account guarantee my child's admission to college?
No. The College Savings Plan of Nebraska does not guarantee admission to any college.
Does the beneficiary have to be a full-time student?
No. Funds can be used for full or part-time studies. Only when withdrawing funds for room & board expenses does the student need to be enrolled on at least a half-time basis.
|
