Custodial prepaid plan on FAFSA?

[CathyInMd]

<p>I have read that due to a mistake in the Higher Education Reconciliation Act of 2205, Prepaid tuition accounts which the student owns don't have to be reported on the FAFSA for dependent students. I can find documentation that this was still true in July 2006. Anyone know if it has been ammended since then?</p>

[swimcatsmom]

<p>Yes it has been amended. There was an error in the law where student owned 529 accounts were not required to be reported on the 2008-2009 FAFSA. This has been corrected for 2009-2010, but they are reported as parent assets for dependent students.</p>

<p>From the 2009-2010 FAFSA instructions:</p>

<p>

Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans. For a student who does not report parental information, the accounts owned by the student (and the student’s spouse) are reported as student investments in question 42. For a student who must report parental information, the accounts are reported as parental investments in question 92, including all accounts owned by the student and all accounts owned by the parents for any member of the household.

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