<p>D's Grandmother set up a Coverdell ESA - the acct. is owned by grandmother with D as beneficiary. I understand that it is not listed at all on the FAFSA, but I haven't figured out how to treat it on CSS/Profile. Is the total amount (around 20k) listed as student asset and attached at 20% for FA, or is money spent on tuition by grandmother from account listed in the catch-all "other money and bills paid/received" line after it is dispersed and counted as the child's income later? or . . . ?</p>
<p>Grandparent-owned Coverdells with the student as beneficiary must be reported on Profile. Like all education savings account, they are reported as a parent asset and assessed at the parent rate, whatever that might be for the particular Profile school (the formulas are rarely transparent). When the money is withdrawn and spent on the student’s college, it is listed as non-taxed “other support”. It’s not considered student income.</p>
<p>It is listed as a parent asset even if it is not “owned” or controlled by the parent? I guess that might be good as parent assets are attached at a lower rate than student assets.</p>
<p>So are parent’s “other money and bills paid/received” considered an asset or untaxed income? And in the finaid formula, are the those amounts assessed at higher or lower or the same as the % for parent’s regular income?</p>