In this case, there are four options. You can use your funds to cover other eligible expenses, like room and board, books, supplies, computer/computer equipment, software, or internet access that some scholarships donâ€t cover. You can change the Beneficiary to another family member, or even yourself. Simply leave the funds in the account for use for other eligible higher education expenses at a later time. Or, you may withdraw funds from your account equal to the scholarship amount without incurring the 10% federal penalty on the earnings portion. The earnings portion of your withdrawals may still be subject to state and federal income taxes. (You should carefully read the Planâ€s Plan Disclosure Statement, or consult a tax advisor for your specific situation.)