Unique Ministry Program Eligibility (?)

[MInistryDad]

We are enrolling our son in a unique ministry program with a curriculum that includes courses in:

• Practical Ministry (including servant leadership, team-building, communication, financial management)
• Discipleship (2 levels)
• Emotional Intelligence & Health
• Life Skills
• Debate (e.g., apologetics)
• Biblical Literature

In addition, students participate in hands-on community ministry and seminary-type devotions.

This "is not an accredited academic program" (from the student handbook), but the organization partners with "a regionally-accredited college," which is on the DOE's FAFSA's list. Students in the program earn college credit toward their BA degrees as well as credits that can be applied toward their pastoral licenses.

Tuition for the program includes room & board (meals for 5 days a week) and covers the costs of all ministry-related work & trips. Students also participate at least once a semester in work days that raise additional funds to help defray program expenses.

This unique ministry program is not on the DOE's list, but (as noted) its partner school is, which leads to the obvious question: Are tuition & other expenses (e.g., computer) 529-eligible?

Thanks to any who can offer insight...

[dcandmc]

Are students who attend the program eligible to receive Federal student loans to help pay for program tuition and other expenses? If the answer is "no," then it's a good bet that the program is not an eligible educational institution for 529 purposes.

[MInistryDad]

dcandmc,

Thank you very much for the note; I appreciate it.

I understand that the two items -- 529- & federal student loan-eligible -- are related, but I don't understand how to determine eligibility for student loans, either.

I guess what I'm looking for are a summary of the criteria which make such an educational program eligible or not.

• I've talked with the administration of the ministry-eduction program, and they didn't know, referring us to the partner accredited college.
• Students of that college are 529-eligible, but the relationship with the college & ministry-education program is an arm's-length partnership.

Hope this helps...

[dcandmc]

Information on 529 plans, including eligibility criteria, can be found in IRS pub 970:

https://www.irs.gov/pub/irs-pdf/p970.pdf

Specifically, start at the last paragraph at the bottom of page 59 for the definition of eligible educational institution.

Based on the information that you have provided, especially that the program is not accredited and that the relationship with the college is an "arm's-length partnership," it doesn't sound like the program is 529 eligible.

[MInistryDad]

Yes; thank you again, dcandmc.

I've seen IRS pub 970 & the referenced paragraph. The 2nd sentence ("['Eligible institution'] includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions." [emphasis added]) gave me pause.

Yes: The word "virtually" makes everything following it suspicious; however, "nonprofit" applies in this case. Since IRS probably means "all accredited ... nonprofit ... postsecondary institutions" [emphasis added again], then I was being overly hopeful.

Perhaps the part of the program associated with the accredited school will qualify...

Thanks again.