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A list of questions related to the category you selected are
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Frequently Asked Questions -
Scholarships, Death or Disability
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What if the beneficiary receives a full or partial scholarship?
If the scholarship covers some or all of the student's tuition and fees, the unused College Illinois! 529 Prepaid Tuition Program benefits can be held for future use, the purchaser can change the beneficiary, or the unused benefit for that semester can be refunded to the purchaser up to the amount of the scholarship. If the purchaser receives a scholarship refund, tax penalties do not apply but income tax may be due on the plan earnings if the refund is not used for a qualified higher education expense.
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What if the beneficiary dies or becomes disabled?
Contract benefits can be transferred to another beneficiary or refunds can be issued to the purchaser based on the mean weighted tuition and fees for the particular plan at the time of death or disability certification. Tax penalties do not apply but income tax may be due on the plan earnings if the refund is not used for a qualified higher education expense.
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