<p>Long story short, we have a small amount saved for our pre-school aged and toddling children. It's in their names, Coverdell. <em>It cannot be transferred to me.</em></p>
<p>I'm applying for a master's and filing a FAFSA for myself.</p>
<p>Do I have to report this asset on my FAFSA? Cheers to anyone who knows the answer.</p>
<p>I would say no since the Coverdell is no longer your asset and, if your child(ren) were of FAFSA age, it would clearly have to be reported as a student asset (even though benefit from the 5.6% qualified educational savings rate clause, it is still not a parent asset).</p>
<p>Actually Coverdells are like 529 accounts and are reported as parent assets on FAFSA. So if it was the child’s FAFSA then it would be a parent asset. </p>
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<p>But, to be honest I am not sure if you would report it on yours.</p>
<p>Yes, obviously if this were me applying for one of my kids, since I can transfer that money between them, I would report it, no question.</p>
<p>But it seems amazing to ask parents to take from their kids’ college funds to pay for their own furthering education. We have paid in there through thick and very, very thin (three months of unemployment). On the other hand, I think I have only just aged out of the parent-reporting (can you imagine me reporting on my kids’ AND my parents’ incomes, including my dad on a fixed income?!?) at 33, so I wouldn’t put it past them. >:^{</p>
<p>Thanks. If anyone else knows about this, please let me know. Cheers!</p>
<p>You don’t report your parents once you turn independent. At age 24 you would have turned 24, but even at younger than 24 you would be independent once you had kids/dependents of your own.</p>
<p>At the meeting we were told that 529 plans are the parent’s asset. The child/children are considered the beneficiaries. So, if a Coverdell has the same set-up, you would have to claim that money as yours - your children are simply the beneficiaries. What difference does it make really, if you use it for you, and then later just have less to claim when it comes time to fill out the Fafsa for your kids. They will qualify for a bit more in aid since there will just be less assets for them to use.</p>
<p>Thanks so much.</p>
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<li> A Coverdell is not a 529.</li>
<li> I can’t take the money for me. I’d have to pay a huge tax penalty and another withdrawal fee and also… it’s for my kids. Money given to <em>them</em> by us and our family.</li>
<li> There won’t be anyone giving them money by the time they go to college… are you joking? I will be employed, gainfully, hence: no aid for my kids. Like I got nothing, even though we were just above the poverty level. And this is assuming that anyone will be getting grants at that time. I have my doubts.</li>
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<p>I’m only filling in the FAFSA for loans. My cousin is a single mom of three kids and got $0 because she has a little savings, and was told by a counselor to lie on her application. She didn’t and I won’t either. </p>
<p>"You don’t report your parents once you turn independent. At age 24 you would have turned 24, but even at younger than 24 you would be independent once you had kids/dependents of your own. "</p>
<p>Not for grad school.</p>