How much of student's assets to spend?

<p>D has a smallish UTMA account that is worth less now than when it was opened. We are starting to put together the funds to pay for fall tuition & we're trying to decide which money to use. Grandparents opened the fund & feel that we shouldn't touch it yet if we don't have to because they feel it has bottomed out & is now starting to come back, but they don't understand the financial aid process. Normally people say that you should spend the student's assets first so they're not assessed again next year, but I'm confused because our FA letter says, "We will expect the same contribution from the student's assets each year while you are enrolled at..." Since this is a Profile school & I think they assessed it at 25%, does that mean the student contribution will be the same each year, regardless of what is left in the account? There is also a student contribution from summer earnings that increases each year. I guess it would make sense to leave it alone if it's not going to affect future student contributions, but I'm not sure if that's the case. Or does it vary from school to school?</p>

<p>I would call the school and ask - it sounds like they have a student contribution from loans/assets and a separate one from student income. How much is that account affecting your (IM) EFC?</p>