529 impact on need aid

RookMSU
Tue, 27 Jan 2026 00:32:11 +0000

I believe (double check) the answer is no …. until he actually receives funds from that 529. So the nephew does not report the amount in the 529 as an asset, but does report the gift “income” received on his next year’s FASFA income statement. What I’ve seen is that due to the two year delays in how taxes are reported, it’s best to use non parent 529 fund for Jr./Sr. year tuition if that possible / or take loans and then pay off the loans with 529 funds right after graduation.