Can 529 plans be used for overseas education?

What international/overseas schools accept funds from US 529 Education Savings Plans?

• Is this commonly accepted, or is it uncommon?

• Answer:

  Distributions from a 529 college savings plan are tax-free only if used to pay for qualified higher education expenses at a college or university that is eligible for Title IV federal student aid. Such a college will have a federal school code that can be listed on the Free Application for Federal Student Aid (FAFSA). There are more than 100 foreign colleges that are eligible for federal student aid. You can find a list at the end of http://ifap.ed.gov/fedschcodelist/attachments/1213FedSchoolCodeList.pdf. If the intention is not to enroll in a foreign institution but to participate in a study abroad program, you can use 529 plan funds to pay for it if the study at the foreign institution is eligible for credit at the student's US home institution (and the US institution is eligible for Title IV federal student aid).