Most Alaskans look forward to that little fall tradition: the Permanent Fund Dividend (PFD) check landing in their account. It’s a perk of living in the Last Frontier, courtesy of the state’s oil wealth. But in 2025, your PFD could do more than cover winter gear or groceries—it could earn you a shot at a $25,000 scholarship through the Alaska 529 Giveaway. The catch? You’ve got to earmark half of your dividend for future education savings.
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How the $25,000 Alaska 529 Scholarship Giveaway Works
Every year, Alaska runs a unique program to encourage residents to save for school. Here’s how it goes:
- When you fill out your 2025 PFD application (usually January–March), check “Yes” to direct 50% of your dividend into an Alaska 529 account.
- That single click automatically enters you into a lottery-style drawing for a $25,000 education scholarship.
- Roughly 45 days after PFDs are paid, the state randomly selects one winner. The prize is deposited directly into the winner’s 529 account.
The money can be used for a wide range of qualified education expenses: college tuition, trade school, apprenticeships, K–12 private tuition, books, housing, even some international schools.
Why This Matters
With tuition and housing costs rising faster than inflation, even modest savings can take the edge off. For families already struggling with rising grocery and fuel bills, putting aside part of the PFD is tough—but the incentive of a possible $25,000 windfall makes it a smart play. Plus, contributions into an Alaska 529 aren’t just about winning:
- Tax-free growth: Your investments grow without federal taxes.
- Tax-free withdrawals: As long as funds are used for approved education costs.
- Flexibility: You can change the beneficiary (say from one child to another) without penalty.
- No age or residency restriction: Accounts can be opened for anyone—kids, grandkids, or even yourself.
Extra Perks for Savers
The state sweetens the deal even more with programs like Dash to Save, where new account holders who deposit at least $25 can snag a $250 bonus. Automatic contributions and payroll deductions can also earn rewards.
Here’s a quick glance at the opportunities:
| Program | What You Do | Reward |
|---|---|---|
| $25K Scholarship Giveaway | Direct half your 2025 PFD into an Alaska 529 account | Automatic entry into $25,000 drawing |
| Dash to Save | Open a new account with $25 minimum | $250 bonus |
| Auto-Save Incentives | Set up monthly or payroll contributions | Extra account rewards |
Who Can Open an Alaska 529 Account?
This isn’t just for parents of young kids. Anyone can open and contribute:
- Any U.S. citizen or resident alien with a U.S. mailing address
- No age limits
- No income restrictions
- You can even open one for yourself if you’re considering career retraining or graduate studies
More on account setup at Alaska 529 Eligibility.
What If You Win?
The $25,000 prize goes straight into your Alaska 529 account. From there, you can:
- Pay tuition and fees
- Cover on-campus housing or off-campus rent (within limits)
- Buy required textbooks and supplies
- Fund apprenticeships and vocational training
Important note: use it for non-qualified expenses and you’ll face taxes and penalties—so keep receipts and track withdrawals carefully.
Key Dates to Remember
- PFD application window: January–March 2025
- PFD payments issued: usually October 2025
- Scholarship winner drawn: ~45 days after PFDs are distributed
Always double-check the official PFD website for deadlines.
Some rumors suggest the scholarship is a “cash payout” you can spend however you want. That’s not true. The $25,000 is locked into an Alaska 529 account and must be used for qualified education expenses under IRS rules.
FAQs
How do I enter the $25,000 scholarship drawing?
By selecting “Yes” on your 2025 PFD application to contribute 50% of your dividend into an Alaska 529 account.
Who can open an Alaska 529 account?
Any U.S. citizen or resident alien with a U.S. mailing address—no age or income limits.
When is the winner chosen?
About 45 days after PFDs are issued in fall 2025.
Is the scholarship taxable?
No, not if it’s used for qualified education expenses.
