D20 gets need-based institutional grant money from her school and they automatically deduct the amount of the grant from her account balance before sending the bill. We arrange for the amount to be sent from the 529 directly to the school. At the end of the calendar year, we got the appropriate forms from the 529 and the school showing equal amounts. The school’s policy is that overpayments will be refunded. If the amount paid exceeds the amount billed, that still gets reported.
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