Non-custodial parent 529 and FAFSA

Paying for College
21

If the child starts college in 2018 then whatever was contributed by non custodial parent 529 in that year 2018 would show up as ‘money paid on student’s behalf’ on the 2020/21 FAFSA (junior year).

So if that money is not contributed until 2020, it won’t show up on his FAFSA, if he graduates in May of 2022.
(good tip above).

Also it would show up as an item in the INCOME column of the student. Not as an asset. So it might not have an impact on FAFSA EFC at all.

22

It would be any money that the non-custodial parent provided for the student’s benefit, whether from a 529 account or not, whether paid directly to the school, given to the student, or applied in some other way.

23

Ok, thanks so much, guys. The more I read it, the more I think this whole thing might not worth the hassle.

“Most colleges don’t meet full need…so you may be doing this all for no net gain.” - very good point, again.