If grandparents have saved for a grandchild’s college education, will those savings have an impact on financial aid packages. If so, would the investment vehicle matter - i.e. 529, etc? I’ve seen a question about this topic on Cornell’s NPC but not on the NPC of some other schools.
They won’t immediately impact the FA but when they are exercised they get added in as other funds paid for the child. Alternatively a 529 could be given which would be assessed as a parent’s asset. Or the gift could be help until the child is a senior and then it will have no bearing on FA.
Thank you. If $14,000 is gifted to both the child and a parent, right before tuition is due, will the gift have an impact on that year’s financial aid? The next year’s financial aid?
It would be next year. The financials are as of the day you file. Anything after that falls into the next year.
thanks a lot @Erin’s Dad