What is nowU?
What are 529 college savings plans?
Will owning a nowU account hurt the beneficiary's eligibility for financial aid?
What are qualified education expenses?
What are eligible educational institutions?

What is nowU?
The nowU Pennsylvania 529 College Savings Program (nowU) is sponsored by the Commonwealth of Pennsylvania and administered by the Treasury Department to help make college possible for individuals and families. By providing information and answers to your questions, nowU can help you move with confidence toward your college savings goal. The core savings plans of nowU are the Pennsylvania 529 Guaranteed Savings Plan (GSP) and the Pennsylvania 529 Investment Plan (Investment Plan).


State financial aid - A nowU account is not included in determining eligibility for Pennsylvania state financial aid programs. Other 529 plans are. If you or the beneficiary is not a Pennsylvania resident, check with your state to determine its financial aid policies.

Federal financial aid - Your nowU account affects the beneficiary's eligibility for federal financial aid in the following ways:

• If the account owner is a custodial parent: Like other parental assets (such as bank savings accounts or mutual funds), only 3% to 6% of money in a nowU account is considered to be available for college expenses.
• If the account owner is also the beneficiary and a dependant student: None of the money in the plan is considered to be available for college expenses.
• If the account owner is someone other than the parent or student: None of the account is considered available to pay for college.

Be sure to check with the schools you are considering regarding their criteria for financial aid.

Withdrawals from a nowU account are tax-free when they are used to pay for qualified education expenses. These are defined by the Internal Revenue Code to include the following:

• Tuition
• Room and board (as specified in the college's cost of attendance; must be at least half-time student)
• Required books
• Required supplies
• Required equipment
• Mandatory fees
• Special needs services

Computers are qualified only if the school or major requires students to have their own computers. Be sure to check with the schools you are considering regarding their criteria for financial aid.

Nearly all colleges, universities, community colleges, law, medical or business schools qualify. Many career or technical schools and schools abroad are eligible as well. The school must be eligible to participate in the federal financial aid programs. For a list of schools, see www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet.