<p>Thank you for your helpful info! Here are some more details which might clarify things even further. We live in VA, so this is a state ed. dept. pre-paid tuition plan, called VPEP. This plan covers tuition at in-state public schools, or a set amount can be applied to tuition at out of state schools or in-state privates. VPEP is not a 529 plan in that it involves after-tax dollars, not pre-tax. We bought this contract with money from our savings account. I have no problem with the terms of the plan or how it is administered. </p>
<p>The school in question is out of state and private. It required the Profile, as did 3 other schools that admitted my D. The problem in my mind is that this school is the only one that put the pre-paid plan in the fin. aid award. The other three schools did not mention it in the award letter, so I have (naively??) assumed that that money would be considered part of the parental contribution if my D were to attend one of the other three schools instead. </p>
<p>My discussion with "a" (not "the") fin. aid director on the phone was pre-arranged, so it was not "on the fly" and she was definitely looking at my daughter's award at the time she spoke to me. This is why I think that that fin. aid office has given me what they consider to be a final word.</p>
<p>After reading the helpful articles posted above, I am bracing myself for biting the bullet and trying to view the pre-paid tuition plan as a way of minimizing the loans instead of seeing it as part of the parents' contribution, but I can't help wondering if the pre-tax vs. after-tax dollars distinction would make a difference to how the college categorizes it. I have to admit that I am pretty ignorant on all financial matters and not very confident as to how to proceed, so any further suggestions that anyone has would be very welcome!</p>