Publication 970 |
2000 Tax Year |
What Is a Qualified State Tuition Program?
A qualified state tuition program is one established and maintained
by a state or an agency or instrumentality of the state. The program
must be set up to provide for a student's qualified higher
educational expenses at an eligible educational
institution. The program must meet certain requirements. Your
state government can tell you whether or not they participate in a
qualified state tuition program.
Qualified higher educational expenses.
These are the tuition, fees, books, supplies, and equipment
required for enrollment or attendance at an eligible educational
institution (defined below). They also include the reasonable costs of
room and board for a beneficiary who is at least a
half-time student. The cost of room and board is generally considered
reasonable if it is not more than either:
- The school's posted room and board charge, or
- $2,500 per year for students living off-campus and not at
home.
Beneficiary.
The beneficiary is generally the student (or future student) for
whom the program is intended to provide benefits. The beneficiary can
be changed after participation in the program begins. If a state or
local government or certain tax-exempt organizations purchase an
interest in a program as part of a scholarship program, the
beneficiary is the person who receives the interest as a scholarship.
Eligible educational institution.
This is any college, university, vocational school, or other
postsecondary educational institution eligible to participate in a
student aid program administered by the Department of Education. It
includes virtually all accredited public, nonprofit, and proprietary
(privately owned profit-making) postsecondary institutions. The
educational institution should be able to tell you if it is an
eligible educational institution.
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