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Hi my name is Mark. I will be happy to help you with your questions. Is Auckland University of Technology different from Auckland University?
Deferment only refers to the ability of the student to defer student loan payments while enrolled in a program at this institution.
Distributions from a 529 college savings plan would be tax free if they are used to pay for qualified education expenses at a school that is eligible for Title IV federal student aid. Unfortunately since AUT is not eligible for Title IV federal student aid the distributions would not qualify for tax free treatment.
As eligible U of A would be eligible for federal student aid distributions. Distributions from a 529 college savings plan to pay qualified education expenses for U of A would be tax free. Unfortunately AUT is not eligible to receive federal student aid distributions. Therefore, distributions from a Section 529 plan to pay for educational expenses to AUT would not be tax free. If expenses came from a 529 you would be responsible for paying taxes on the gain portion of the distribution.