529 impact on need aid

BelknapPoint
Tue, 27 Jan 2026 21:01:58 +0000

RookMSU:

I think different 529 plan sponsors handle it differently; but mine allows me to just pay any approved educational expenses directly with my credit card or from my bank acct, I send them an email showing the expense and explaining it, and they wire me the funds to pay off my card. Paying tuition directly from the 529 seems like a hassle, so I avoid that.

As far as I know, all 529 plans allow for qualified expenses to be paid directly by the beneficiary, account owner, someone else, etc., and the account administrator will distribute account funds when requested by the account owner, either before or after the expense is actually paid (just make sure the payment of the expenses and the corresponding distribution from the 529 account happen in the same year). I have never heard of a requirement imposed by a 529 account administrator to substantiate and explain expenses before a distribution is approved. This is the definition of hassle. It’s like a 529 account has been turned into a Flexible Spending Account, with all the negative connotations that has. Which 529 plan is it that requires this?