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Is it time to start saving for your child's education? State Employees' Credit Union offers the Coverdell Education Savings Account (CESA) as a method of saving for elementary, secondary and higher education expenses. To open an account, you will need a $25.00 deposit. It can be established by parents, grandparents or other interested individuals. Eligible educational institutions are any college, university, vocational school or other post-secondary educational institution eligible to participate in student aid programs administered by the United States Department of Education and elementary and secondary education institutions. (Almost all accredited post-secondary institutions qualify.) The great thing about the account is that it has tax-free withdrawals to pay qualified education expenses.

Qualified Education Expenses

Qualified elementary and secondary education expenses include the following:
  • tuition, fees, academic tutoring, special needs services, books, supplies, and equipment expenditures incurred by a beneficiary at a public or private school
  • room and board, uniforms, transportation and supplemental items and services (such as extended day programs) required or provided by a public or private school
  • expenses for purchase of any computer technology or equipment for use by the beneficiary and the beneficiary's family during any years the beneficiary is in school (does not include non-educational software designed for sports, games or hobbies)
Qualified higher education expenses include the following:
  • tuition, fees, books, supplies and equipment
  • a portion of room and board expenses if the beneficiary is enrolled on a half-time or greater basis
Beneficiary (child) must be a member of SECU and under the age of 18 at the time the account is opened.