We have a prepaid tuition plan through College Illinois. My son was awarded an AFROTC Type 1 scholarship and will attend an instate school which is approximately $12,000/year in tuition and fees. The College Illinois account is only tax advantaged if it goes to tuition and fees. It is prepaid tuition, not a 529 savings plan. Has anyone been through something similar? We can get the tuition/fee amount out of College Illinois with a scholarship refund form, but I am not sure of the tax implications of this. Would we be better using the AFROTC room and board option of $10,000? I know that is taxable if going that route. I am also reaching out through other avenues to see if I can find a tax professional to help, but we do not live in Illinois anymore so our local preparers are not well versed in this. Has anyone been through something similar with prepaid tuition plans?
Prepaid Tuition Plan and AFROTC Scholarship
- Thread starter jetski888
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