Last year, the school started charging tuition for graduate classes.

WSJ: Famed free NYC college to start charging tuition

Then all withdrawals are federally tax-free as long as the money is used for college or graduate school expenses, including tuition, fees and room and board.

FORBES: A Gift From The IRS

Then all withdrawals are federally tax free as long as the money is used for college or graduate school expenses, including tuition, fees and room and board.

FORBES: Give Now

Starting in 2013, the school expects to significantly expand its small graduate program, charge tuition for those students while creating online classes and adding more continuing-education courses.

WSJ: Change at Cooper Union