<p>Ok, so I just went through the FAFSA4caster and missed this or it wasn't there. Anyway, where would I enter a pre-paid (not 529) plan? Also, I'm now hearing that for planning ahead, I messed myself over because it's going to penalize me on the FAFSA. Is this true?</p>
<p>On the CSS Profile you include it in parent assets if it’s in the parent’s name, otherwise in kids. I haven’t gotten to the FAFSA yet, but maybe this reply will point you in the right direction. </p>
<p>If it’s treated as a parental asset, I wouldn’t say you messed yourself over. You still got the tax benefits :)</p>
<p>The value of your prepaid plan is listed on the FAFSA as a parental asset (part of investment value). <a href=“http://www.fafsa.ed.gov/fafsaws90c.pdf[/url]”>http://www.fafsa.ed.gov/fafsaws90c.pdf</a>. Go to Parent Asset Value. You will see the instructions for net worth of parent investments. You use the refund value of the prepaid plan at the time you file the fafsa — there should be a website for the state where you can get that value (in Michigan, we go to our state government website & we are able to look up refund value online). Because there is protection for parent assets, this doesn’t hurt you. The money from the prepaid tuition is not used against you in packaging financial aid, which is also a good deal.</p>
<p>My daughter’s grandparents purchased a Texas Guaranteed Tuition Plan for my daughter.
My circumstances are such that I had to apply for FAFAS. Because I did not purchase the Tx Guaranteed Plan will it count against me on the FAFSA?</p>
<p>You do not put the value of the grandparents’ plan on the FAFSA. However, you are supposed to report the payments from that plan that were made in a particular year as “other gifts” on your child’s FAFSA information. For example, if this is the first year of school, you wouldn’t report anything … the payment has not been made yet. In fall '10, let’s say the plan paid $4000 toward your child’s college costs. On her 10-11 FAFSA, you would list $4000 as gifts in the student section of the FAFSA. In winter '11 & fall '11, let’s say she received $4000 each semester for a total of $8000 … for 11-12, you would report $8000 under gifts.</p>
<p>We also have the original Texas pre-paid guaranteed tuition plan. For 2010-2011, the plan is paying $241 per hour (for the particular plan that we purchased). The 2011-12 rates won’t be set until July.</p>
<p>For purposes of completing the FAFSA, I assume I should use the $241 rate. (From 2009 to 2010, it went up about $15.)</p>
<p>Is that how I indicate the amount for this plan, or do I use the final amount that we PAID for the plan?</p>