No. As of August 14, 2023, Step Up has confirmed that leftover money does roll over (up to $24,000 per year), and can be used for any eligible purchase or expense category for PEP. However, a 529 College Savings account is not an eligible use of PEP funds. Only FES-UA scholarships allow the rollover to be applied toward college savings accounts.
Update from Step Up as of August 28, 2023:
Although a 529 College Savings account is not an eligible use of PEP funds, you can use any remaining PEP funds in your account after graduation toward reimbursement of eligible expenses. Find more details on this in this related FAQ:
Is this something we could lobby for? Do the legislators seem open to adding that to the PEP scholarship with enough encouragement from constituents?
Update posted to the above FAQ as of today!
In lines 430/431 of HB1 it also lists the same wording for UA families about the scholarship remaining in force until "430 e. The student graduates from high school or attains 21 years of age, whichever occurs first"
But it does specifically address 529 plans as eligible expenses for UA families in lines 375-378.
So could this then just be something that intent wasn't that one scholarship could be used after high school while another wasn't intended to but just a matter of categories being left out?