Guessing back:
1. Travel is not a QE---with some possible exception if its part of the program and not billed/paid separately--which is not the case you post.
2. My recollection is that if you get say $15,000 scholarship then to withdraw $15,000 from 529 provided an exception and the 10% penality does NOT apply to teh income component of that $15,000--but the income is still counter.
2.1 Income counts to distributee--so there may be considerable latitude as to who is distributee.
Me, I cannot predict the future---and my kids went on for graduate school--and I also have some 529 funds left over--right now I see it as a very bomb proof tax free kitty for future grandchildren, and one I can exercise a whole lot of control over!
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Drew
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