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A 529 plan is covering my niece’s college rent. What other expenses can be paid tax-free?

Digilifetrends Updated 2026-09-24 1 min read

We set a monthly budget of $1,500 for her share of rent, utilities, and food, including groceries and meals on campus

Dear Extra Credit,

“Last spring, the university emailed me its estimated 2025-2026 cost of attendance for a full-time student living off campus: $16,000.” (Photo subjects are models.)
“The university sent me an estimate for her 2025-2026 cost of attendance as a full-time student living off campus: $16,000.” (Photo subjects are models.)

Jillian Berman is an assistant managing editor for news and enterprise at MarketWatch, where she covers student loans and consumer debt. Her book on the student-debt crisis, “Sunk Cost: Who's to Blame for the Nation's Broken Student Loan System and How to Fix It,” was published in 2025. You can follow her on Twitter @JillianBerman.

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