A 529 plan is a savings account that pays for a student's qualified education expenses while attending college. This includes not only tuition and room and board, but also computer equipment, books and mandatory school fees. However, a student can only use 529 funds at an eligible educational institution.

Foreign Schools May Receive 529 Funds

A student can use funds from her 529 plan to pay for studies at a foreign university if the school is an eligible educational institution. This is any vocational school, college, university or other post-secondary educational institution that participates in financial aid programs sponsored by the U.S. Department of Education. Students can confirm a foreign school's eligibility by conducting a "Federal School Code Search" on the Department of Education's Federal Student Aid website. The search lists domestic and foreign schools that participate in the department's financial aid programs.