how do colleges treat assets in 529 plan?

Paying for College
1

<p>I heard different stories how colleges treat assets in 529 plan. Some of them treat it as parents' assets. However, I also heard some colleges treat it as students' assets, but I do not know which schools. If you know some schools treat it as students' assets, can you please share the name and your experience?</p>

<p>Thanks.</p>

2

<p>They are parents assets. How can a school count something owned by the parent as a child’s asset? </p>

3

<p>They are parents assets. Parent can change the beneficiary. </p>

4

<p>In the majority of cases they are parent asset. Exception is if they are in UGMA accounts - I believe those are student assets as the ownership can’t be changed. </p>

5

<p>529s are always treated as parent assets, whether they’re owned by the parent (regular 529) or the student (“UTMA/529” or “custodial 529”).</p>

<p>UGMAs are always treated as student assets because they’re owned by the student.</p>

6

<p>Just to clarify, assets in 529 are definitely treated as parents’ assets in FAFSA. But for CSS Profile colleges, some treat these assets as students’. </p>

7

<p>We filled out the CSS and it was a parent asset on that as well. </p>

8

<p>The difference with the css profile is that private schools using it can calculate the reduction in aid from the 529 value as high as 25 percent while the Fafsa is using the asset number of 5.64 I believe. The reason we were told is 529 is a specific account for college while a stock account or other investment is viewed more as a general asset not purchased specially with the intent of funding school. Basically the 300 or so schools using css can set their own rules in value percentages of the 529. </p>

9

<p>^^ That is what I heard and it is totally up to each CSS school to decide how assets in 529 plan are treated. It would be a good idea to share the school names who don’t treats 529 plan assets strictly as parents’ assets.</p>

10

<p>^^^
This.</p>

<p>For FAFSA purposes, 529 accounts, whether parent-owned or student-owned (so-called custodial or UGMA/UTMA accounts) are always treated as a parent asset. Colleges that use their own methodology to assess financial need (primarily through Profile/CSS) can treat 529 accounts however they wish, which isn’t always the same as FAFSA.</p>