While the money you save in a GSP is specifically earmarked for college or career school, you can always get your money back whenever you want, for any other purpose.

Not only can you get your money back, but you also get the growth on your contributions, if any. Depending on the reason for a withdrawal not used for qualified expenses, you will get back either:

(1) the growth you would have received had you used your account for college, or
(2) the growth the GSP Fund achieved on your contributions.

In any case, you will never get back less than what you put in your account, less any fees.^*

Because of the tax advantages earned while you are saving in your account, there are federal and state tax consequences if you don't use your account for qualified expenses. A withdrawal or a portion of a withdrawal not used for qualified expenses may be subject to federal, state and local income taxes. And with a few exceptions, the growth included in the withdrawal is also subject to an additional 10% federal income tax penalty.

It is almost always better financially to use your account to pay for qualified expenses at college or career schools. So before withdrawing funds for other purposes, you may want to consider other options. For example, if your child decides not to go to college right away, you can wait. Or, you have the option to change the Beneficiary to another member of the family of the previous beneficiary - even to yourself - and keep control over the account.*

* For beneficiary changes to occur without tax consequences, new beneficiary must be a "member of the family" of the previous beneficiary.