Celebrating my darling daughter's award of a full tuition scholarship to a top 50 liberal arts college! (Not the kind of school I would choose, too small, but exactly what she wants.)We have more than enough in the 529 account to cover room, board, and books and she has worked and saved enough for a year's spending money. So she will graduate debt free.
For those of you who wondered about what happens to money in a 529 account if you get a scholarship, I learned that she can withdraw money each year (up to the amount of the scholarship) with no penalty. She would have to treat it as income for tax purposes, but we don't have that much extra in the account and her income from a part time job is pretty small, so she won't actually have to pay taxes. Or we may leave it in for grad school.
