Q. Is any other suggestion you can recommend?
A. You appear to know about the main two: 1. Change the beneficiary to another relative and 2. Roth IRA rollover.
Q. Any information on 529 to Roth IRA conversion?
A. Some restrictions apply. For details, see:
https://www.cnn.com/cnn-underscored/money/529-to-roth-ira#:~:text=As%20of%202024%2C%20the%20followin....
You said "her tuition is paid by the State scholarship". I assume that means the scholarship must be used for tuition (restricted scholarship). So, you can't use the taxable scholarship shifting of expenses.
Room and board are qualified expenses for a 529 distribution, even if living off campus or at home. Books and a required computer are also qualified expenses. Books and a required computer are also qualified expenses for a tuition tax credit, if you otherwise qualify (your income is not too high).
You are correct, the 10% penalty is waived for the scholarship exception (or tuition credit exception).
