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529 Accounts and financial aid

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529 Accounts and financial aid

Good news if the student needs financial aid


  1. 529 accounts are considered parent assets and counted at 5.6% or less for financial aid calculations (FAFSA).
  2. Distributions from grandparent-owned 529 accounts are no longer considered "student income," which is counted at a higher rate.
  3. 529 accounts for siblings are no longer counted as family assets and are not reported on FAFSA

By Larry Derany