<p>FAFSA does not consider 529 assets even owned by the student as student assets and calculates them using their 5.6% formula which is how parents’ assets are assessed after a protection allowance. That is a big difference from the 20% with no allowance that would go right towards the student EFC if the student kept the money as an asset in most other accounts. </p>
<p>That does NOT mean all schools look at the 529s that way. Certainly not with their own money and I know a number of PROFILE schools that use different formulas for student assets, consider even 401 K funds at times. That’s why each school has to be specifically approached and asked how 529s are handled. </p>