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Yes, NCCU would still “see” funds that have been transferred into a 529 account, but, as explained in painstaking detail above, funds in a 529 college savings account are treated as a parent asset and not a student asset, which would have a profound impact on the student’s eligibility for aid.</p>
<p>SugarBubbleTea, that is not the way it works. Moving the accounts in this allowed way does change much. It changes from a student asset to a parent asset making the student eligible for much more aid. The student should file a FAFSA - why should he turn down free money that is easier to get than small outside scholarships. You really make no sense.</p>
<p>Actually, money in parent accounts is assessed at 5.6% towards EFC on FAFSA…after the asset protection allowance. Student held money is 20%, and there is no asset protection allowance.</p>
<p>Putting the money into a 529 will make it 5.6% regardless of the holder.</p>
<p>And sugar bubble…the very best scholarships are merit awards given by the colleges themselves. So…this student should start looking for Colleges where he will qualify for merit awards.</p>