I understand that I can pull money back out of a 529 plan and pay only tax (no penalty) up to the amount of scholarship received. What if my kid got a Pell Grant and other financial aid (some SUNY grant or somesuch). Can I treat that as a scholarship and pull the same amount back out? Those grants will reduce what I need to pay out of the 529. So it seems logical. But I have found no reference to this. So I am skeptical.