According to the fafsa formula, student income (total of taxed and untaxed with income allowance and allowances for taxes subtracted out) is assessed at 50%. Sorry but I can't link to the formula because I don't yet have the hang of this IPad. But if you Google "fafsa formula", you can find it.
^^^ Thanks. So the grandparent 529 could have a major impact on future aid. A $20,000 distribution in a grandparent 529 will not affect aid for the first year but will increase EFC by $10,000 in the second year. That is why they apparently recommend not to use the money till the final year.
