<p>This thread illustrates why it’s a good idea to find out all you can about FA by early in your child’s junior yr in hs, at the latest – know the concept of “base year” for FA, how student vs parent assets, and student vs parent income are assessed by FM & IM. Reading Kalman Chany’s “Paying for College Without Going Broke” is something I highly recommend. This page is also very good: [FinAid</a> | Financial Aid Applications | Maximizing Your Aid Eligibility](<a href=“http://www.finaid.org/fafsa/maximize.phtml]FinAid”>http://www.finaid.org/fafsa/maximize.phtml)</p>
<p>At any rate, it may be too late (depending on the OP’s deadlines for FAFSA &Profile), but if the $$ in the UGMA could be transferred to a 529 before submitting the forms, then the $$ would be assessed at the lower parents’ rate of 5.64% (FAFSA) or 5% (Profile), after subtracting out the asset protection allowance. If still in a UGMA, that money will be assessed at the student rate of 20 or 25%.
I don’t have a feel for how long it would take to open up a 529 and transfer the funds - someone here may know this.</p>