<p>I have 529 accounts for each of my two kids. When I used the FAFSA4CASTER calculator it only asked for my savings. Are these amounts simply part of my savings? If so, seems that penalizes me for having saved for my kids education and seems that the amount in my younger son's account is increasing my EFC for my older son's financial aid. I can't use that money for my older son, so how does that make sense? Thanks for your assistance.</p>
<p>It is reported as a parent asset on the FAFSA, but assets (above your protected amount) are only assessed at 5.6%, so while you’ll have to report them they won’t effect your kids’ EFC a great deal. Income is the biggest factor in the FAFSA calculations.</p>
<p>I’m wondering, as a parent with 529 accounts for your children and additional savings as well, would you even qualify for federal financial aid anyway? Normally people with incomes low enough to qualify for aid don’t have multiple accounts of this sort.</p>
<p>Remember, your EFC is not what a college will expect you to pay, necessarily. It is often merely a minimum they expect you to pay.</p>
<p>If you have parent-owned 529s, you actually can use your younger son’s 529 for your older son. With parent-owned 529s, the beneficiary of the account is easy to change. That’s why you have to report all parent-owned 529s on FAFSA. </p>
<p>By the way, if the 529s were owned by the grandparents, they wouldn’t be reportable.</p>