<p>I’ve always thought of the 529 plan as a long term savings option, best suited to families with a decent income. Below a certain level it makes more sense for the parents to be putting money in their retirement accounts. Grandparents would need to be even more financially sound before locking up funds in a college account for a grandchild I’d think…</p>
<p>On the other hand, if a family member can loan money to the kid and may be willing and able to forgive the loan in the future, that is a much better option than the kid going too deep into debt with private loans and the relative as cosigner. I think there will be a growing need for families to find creative ways to fill in FA gaps - perhaps for all four years or maybe only to “get to the finish line” as real aid falls far short of meeting need.</p>