529 question: should we put the $$ in IRAs instead?

[vballmom]

<p>This statement is out of date:</p>

<p>

Colleges and financial scholarships generally assume that 35% of assets in a child’s name be used to pay tuition before calculating any award of financial need. This figure is approximately 6% of assets for parents’ assets.

</p>

<p>The actual amount is 20% for student assets.</p>

<p>If you’re saving money to pay for your child’s college, then a 529 is the way to go because it’s assessed at the parent rate of 5.6%, rather than the student rate of 20%, by FAFSA.</p>