529 Plans to pay scholarships
Hi! Our Community Foundation is looking into paying scholarships through 529 plans to help avoid aid displacement. Do any other organizations pay scholarships this way? Has it been helpful in reducing aid displacement? Thank you!
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We haven't looked into it, but I do know that there are not a lot of families in our area with 529 plans. I am not sure what happens in that case? Do you ask the student to create one?
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No, we would probably have an organization owned 529 Plan and then make the students beneficiaries. Here's a helpful FAQ article on how it could work:
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Thank you! I am interested in hearing more from foundations that have adopted 529 plans as well. We have a lot of small dollar scholarships so I don't know if a 529 would be appropriate, but I will definitely read the article.
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We are in the process of implementing 529 Plans into our payment plan for this year. I can keep you posted on how it goes!
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