529 Room and Board Expenses
These expenses are only allowed for a student enrolled at least half-time and for post-secondary education. The amount of room and board treated as qualified higher education expenses shall not exceed the minimum room and board allowance determined in calculating costs of attendance for Federal financial aid programs under section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll) as in effect on August 5, 1997. Thus, room and board costs shall not exceed:
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Living at Home - $1,500 per academic year for a designated beneficiary residing at home with parents or guardians. (Proposed Reg 1.529-1(c) – Definitions (2)(i))
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Living in Educational Institution’s Housing - For a designated beneficiary residing in institutionally owned or operated housing, room and board costs shall not exceed the amount normally assessed most residents for room and board at the institution. The expense for room and board qualifies only to the extent that it isn't more than the greater of the following two amounts (Pub 970).
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The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.
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The actual amount charged if the student is residing in housing owned or operated by the school. The beneficiary (student) may need to contact the eligible educational institution for qualified room and board costs.
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Other Housing – The amount shall not exceed $2,500 per academic year. (Proposed Reg 1.529-1(c) – Definitions (2)(i)) This type of housing is often referred to by the general term “off-campus housing.”