Latest news with #TitleIV
Yahoo
6 days ago
- Business
- Yahoo
Can I use a 529 plan to study abroad?
You can use a 529 plan for study abroad, but only at schools eligible for Title IV federal student aid. Qualified expenses include tuition, fees, book and room and board — but not travel, health insurance or daily living costs. Misusing funds can trigger income taxes and a 10 percent penalty. 529 plan withdrawals may be taxed by the host country, even if they're tax-free in the U.S. Yes – you can use a 529 plan to help pay for a study abroad program if the overseas institution is eligible for Title IV federal student aid, but using these funds internationally comes with strict rules. Not all schools or expenses qualify, and misusing the money could cost you in taxes and penalties. Before you book your flight, be sure to confirm your study abroad program is hosted at an eligible institution under the Department of Education. Make sure the funds are only being used for qualified expenses, and you understand which expenses are not covered. A 529 plan allows you to save money for 'qualified' education expenses. Generally, those include the normal costs of attending an educational institution. >>Learn more: Opening a bank account while abroad To count as qualified, expenses must be required by the school and directly related to your enrollment. Eligible costs include: Tuition and fees Books, textbooks, supplies and equipment Room and board, if enrolled at least half-time Computers and internet access Bankrate's take: If you're living off-campus, your rent must fall within your school's published room and board allowance. Save receipts in case of an audit. Even if the following are necessary costs while studying abroad, they cannot be paid with 529 funds: International health insurance or medical costs Flights and transportation Basic living expenses (groceries, clothing, toiletries) Cell phone plans Sports and activity fees If you use 529 funds to pay for these nonqualified expenses, the IRS will apply income tax to the withdrawals, as well as a 10 percent penalty on the earnings portion of the withdrawal. Covered by 529 Not covered by 529 Tuition and fees Flights and transportation Books and supplies Health insurance Room and board (must be part-time or full-time students) Daily living expenses (groceries, clothing, toiletries, etc.) Computers and internet Cell phone bills Sports and activity fees You can't 'double-dip' by claiming the American Opportunity Tax Credit (AOTC) or Lifetime Learning Credit (LLC) on the same expenses you pay with 529 funds. If you use 529 funds for expenses already covered by those credits, those withdrawals may become taxable. Here's a step-by-step guide to make sure your withdrawal is tax-free and properly documented: Confirm school eligibility: Use the Federal School Code Search, which has the unique school codes assigned by the U.S. Department of Education to schools included in the Title IV federal student aid program. Get an official cost of attendance: Request a breakdown of qualified expenses from the school, including room and board limits. Calculate your qualified expenses: Only include tuition, fees, book and room and board. Exclude unqualified costs like travel or food. Withdraw only what's needed: Request a distribution from your 529 plan administrator, specifying who receives the funds — either the student, the school or both. Keep detailed records: Save receipts, invoices and course requirement lists. You may need them if the IRS ever questions the withdrawal. Using a 529 plan to fund study abroad can make sense — but not always. Here's what to consider. Your school abroad is Title IV eligible. You're earning a full degree or completing a semester abroad through a partner program. You want to avoid loans and already have funds saved in your 529. You're using funds for tuition and qualified room and board, not daily expenses. You're attending a school that isn't Title IV eligible — your withdrawals will be taxed and penalized. Most of your expenses will be for travel, insurance or other unqualified costs. You're participating in a short-term third-party program with hard-to-document expenses. You plan to take advantage of the AOTC or LLC tax credits and want to avoid overlap. Yes – you can often use federal financial aid for international schools, but only if the institution participates in the Title IV program. Eligible aid includes: Pell Grants Direct Subsidized and Unsubsidized Loans PLUS Loans Bankrate's take: Graduate students may have different aid limits, but many federal programs are still available abroad. Always confirm with your school's financial aid office. If a 529 plan won't fully cover your costs or your school isn't eligible, here are other ways to fund your experience: Apply for scholarships The U.S. Department of State provides a list of scholarships available for students studying abroad in different countries, typically provided by foreign governments. Scholarship search engines can help you find financial aid from private organizations. Manage your expenses Unless your study abroad plans are already set in stone, consider going to a country with a lower cost of living. Compare program costs between universities and try to find the right fit for your budget. Get a job Depending on which country you're planning to study in, you may have opportunities to work while you complete your coursework. Research visa requirements beforehand to understand what your options will be. You can also take a break between semesters and work at home before you travel. Be forewarned that if you're caught working without a proper visa, you may be required to leave the country, even if you didn't finish your course of study. Stick to a budget Choose locations with a lower cost of living, avoid tourist-heavy cities and continue being intentional with your spending. Saving plans are one financial tool you can use to pay for study abroad programs and can be a useful way to cover the expenses of education overseas. Consider all costs, including taxes, when factoring your decision and determine if using a 529 plan to pay for your education makes sense for you. If a 529 plan isn't the best option, and you don't have enough savings or free aid to cover your program, keep an eye on current student loan interest rates. Exhaust all federal options before turning to private ones. What are the tax implications when using 529 funds for international schools? Qualified withdrawals from a 529 plan are tax-free under U.S. law, but some governments may tax the funds. Always check local tax laws before using 529 money overseas. How do I know which international schools are eligible for 529 plans? The funds from a 529 plan can only be used to cover the costs of international schools that are eligible for Title IV federal student this complete list of International schools participating in the Federal Student Loan Programs. Only schools on this list are eligible.
NBC News
04-06-2025
- General
- NBC News
Trump administration claims Columbia violated Title VI, threatening school's accreditation
The Trump administration said Wednesday it has notified the accreditor for Columbia University that the school violated Title IV, threatening the university's accreditation status by saying it "no longer appears to meet the Commissions accreditation standards." The U.S. Department of Education's Office for Civil Rights (OCR) and the Department of Health and Human Services' Office for Civil Rights (HHS OCR) "determined that Columbia University acted with deliberate indifference towards the harassment of Jewish students, thereby violating Title VI of the Civil Rights Act of 1964," according to press release from the Education Department. The release says the school has been in violation since the start of the war in the Middle East that began on Oct. 7, 2023 when Hamas invaded Israel.
Boston Globe
20-05-2025
- General
- Boston Globe
Forget the snacks and soda, this N.H. school installed a vending machine for books
Students in the elementary school earn gold coins from their teachers for exhibiting good behavior. Each month, the school focuses on a specific behavior that they're trying to promote: like collaboration, self-control, or being a good friend. Once they've won a coin, the students can cash it in at the vending machine for a book of their choice. 'It is wildly popular with students, teachers and parents,' said Thompson. 'It's really kind of created this hype at the elementary school.' Thompson said the school used federal Title IV funds for the initial purchase of the machine and for one refill of books. A Hampstead mothers' club has raised additional money for purchasing more books, and the school has an Amazon wish list where parents can buy books to restock the machine, according to Thompson. Get N.H. Morning Report A weekday newsletter delivering the N.H. news you need to know right to your inbox. Enter Email Sign Up Located by the school's main office, the vending machine for books looks much like the kind that distributes snacks or soda, with over 20 different colorful titles visible from behind a pane of glass. Advertisement Thompson said teachers and students weighed in on the most popular titles to make sure the selection of books is as irresistible as possible. 'It checks two boxes,' he said. 'One is it supports literacy and gets kids Advertisement This story first appeared in Globe NH | Morning Report, our free newsletter focused on the news you need to know about New Hampshire, including great coverage from the Boston Globe and links to interesting articles from other places. If you'd like to receive it via e-mail Monday through Friday, Amanda Gokee can be reached at
Yahoo
15-05-2025
- Politics
- Yahoo
CUNY warns $17M in research grants at risk after Trump stop-work orders
The City University of New York could lose up to $17 million in federal research funding after the Trump administration issued dozens of stop-work orders, school officials said Thursday. The federal agencies' directives touched 78 grants — from environmental research to studies about the impacts of diseases on minority groups — and 98 employees across CUNY's campuses. 'This is not just numbers and figures, which are important,' Chancellor Félix Matos Rodríguez warned during a City Council hearing on CUNY's budget. 'This is careers. These are mentorships. These are our potential next generation of scientists or artists that are being cut short by not being able to be part of this grant. So absolutely a disaster disinvestment in research.' In their notification letters, federal agencies cited President Trump's executive orders or changes in priorities as reasons for the stoppages, according to CUNY's testimony. The presidential administration has previously pulled back from climate change and diversity, equity and inclusion research. But overall, school officials suggested it has been hard to predict which federal grants would be terminated. 'It varies all over, and no real rhyme or reason to which ones were canceled,' said Alicia Avero, interim executive vice chancellor and university provost. CUNY's response has involved providing researchers with bridge grants to finish their projects, school administrators said. The public university system has also launched a task force to help challenge stop-work orders and teamed up with New York State Attorney General Letitia James to sue the Trump administration. 'We are trying to be aggressive in defending when we believe that the ground for the stoppage is inappropriate,' the chancellor said. Those efforts may be bearing fruit. To date, federal agencies have rescinded seven of the 78 stop-work orders at CUNY, according to a system-wide tally compiled by administrators. CUNY spokespeople did not immediately clarify if the rescinded directives reduced the federal funding at risk. They also did not comment on the 98 impacted employees, including if any were at risk of losing their jobs. 'The federal government is trying to unemploy CUNY workers and make our students dumber,' said Councilman Eric Dinowitz (D-Bronx), chair of the higher education committee. 'It appears the federal government also wants us to be less healthy — that's my opinion.' In the meantime, CUNY is facing other headwinds from the federal government. A provision in the budget reconciliation bill moving through Congress would raise the full-time credit load to qualify for Pell Grants — potentially shutting CUNY students out of a major source of financial aid, school officials said. The proposed change requires students take 15 credits, instead of 12, to be eligible for the federal support. In recent years, CUNY has received $888 million in federal Title IV funding — which includes grants, loans and work-study programs — and 57% of CUNY students receive federal financial aid, according to university data. 'That's a big, big chunk, obviously, of our students that we serve, that come to CUNY for an education,' said Sherif Soliman, senior vice chancellor for budget & finance and chief financial officer. As a result of Trump administration changes, 25 CUNY international students had their visas revoked, then restored, the Daily News previously reported. But school officials shared that three students had already left the U.S. and planned to finish their degrees online.
Yahoo
12-05-2025
- Politics
- Yahoo
Trump DHS investigates L.A. County for providing federal benefits to unauthorized immigrants
The Trump administration announced Monday that it has launched an investigation into California's Cash Assistance Program for Immigrants, a state program that provides monthly cash benefits to aged, blind, and disabled non-citizens who are ineligible for Social Security benefits due to their immigration status. The investigation began in Los Angeles, with Immigration and Customs Enforcement's Homeland Security Investigations Los Angeles field office issuing a Title 8 subpoena to California's Cash Assistance Program for Immigrants, the Department of Homeland Security said in a news release. According to the department, the subpoena requests all records from the Los Angeles County Department of Public Social Services, the agency that administers the state program, to determine if ineligible immigrants received supplemental security income from the Social Security Administration over the last four years. "Radical left politicians in California prioritize illegal aliens over our own citizens, including by giving illegal aliens access to cash benefits,' Homeland Security Secretary Kristi Noem said in a statement. 'The Trump Administration is working together to identify abuse and exploitation of public benefits and make sure those in this country illegally are not receiving federal benefits or other financial incentives to stay illegally," Noem added. "If you are an illegal immigrant, you should leave now. The gravy train is over. While this subpoena focuses only on Los Angeles County — it is just the beginning.' According to Homeland Security, its Los Angeles investigations field office is subpoenaing records including applicants' name and date of birth, copies of applications, immigration status, proof of ineligibility for benefits from the Social Security Administration and affidavits that supported the application. The investigation comes after President Trump signed a presidential memorandum on April 15 to stop immigrants lacking documentation from obtaining Social Security Act benefits in what he called a bid to stop incentivizing illegal immigration and protect taxpayer dollars. The memorandum directed the secretary of Homeland Security to ensure unauthorized immigrants do not receive funds from Social Security programs and prioritized civil or criminal enforcement against states or localities for potential violations of Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act. It also expanded the Social Security Administration's fraud prosecutor program to at least 50 U.S. attorney ofices and established a Medicare and Medicaid fraud-prosecution program in 15 U.S. attorney offices. This is a developing story and will be updated. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
