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College Savings

Word of the Day Wednesday: Qualified Higher Education Expenses

Each Wednesday, MEFA will feature a Word of the Day, where we’ll highlight a word (or sometimes a phrase) related to the college planning process. This month, we’re focusing on vocabulary related to saving for college.

Today's Word of the Day is Qualified Higher Education Expenses.

Qualified Higher Education Expenses are costs incurred by an eligible student that are required for enrollment or attendance at an eligible educational institution.  These expenses are tuition, mandatory fees, required books, supplies, and equipment.

Why does this matter to you?

Some of the many benefits of saving for college in a 529 plan like the MEFA U.Fund are the possible tax benefits. Earnings grow tax deferred and distributions are federal and state income tax-free when used to pay for Qualified Higher Education Expenses. This flexibility in how the money can be used is one of the reasons many families choose to save for college in the U.Fund.

With anything tax-related, check with your tax expert.  With other aspects of college planning, remember to stay connected with the experts here at MEFA.

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