Question

With regards to the Qualified Tuition Program, which of the following is FALSE? All students are designated beneficiaries of a QTP, and distributions occurred in 2020:

A. Ethan can take a distribution of up to $10,000 to pay down his student loan principal.

B. Grace can take a distribution of $6,500 to pay her student loan interest.

C. John can take a distribution of up to $j10,000 to help his stepbrother, Chris, pay student loan interest and/or principal.

D. Samantha can use up to $10,000 to help pay principal and/or interest on her cousin Frederick's student loan.

Answer 1

Answer: D. Samantha can use up to $10,000 to help pay principal and/or interest on her cousin Frederick's student loan.

Beneficiary include :

Son,daughter, stepchild, foster child, adopted child, or a descendant of any of them.

Brother, sister, stepbrother, or stepsister.

Father or mother or ancestor of either

Step father or stepmother.

Son or daughter of a brother or sister

Brother or sister of father or mother

. Son-in-law daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

The spouse of any individual listed above

First cousin