529 plan grandchildren

kelsmom
Thu, 16 Dec 2021 22:20:17 +0000

Grandparent 529 accounts will be “better” than parent 529 accounts in the FAFSA formula beginning in 2023-24. The money a grandparent (or anyone other than a parent) pays toward a student’s schooling won’t be counted. I wonder how long that will last - it doesn’t really make sense in terms of what the government is trying to do as it transforms financial aid. I don’t have a crystal ball, but I wouldn’t be shocked if that rule changes before our baby grands are in college. I also don’t know what Profile schools will do when this FAFSA rule kicks in, but I would not be surprised if they count the non-parent payments for institutional aid. And finally … if your kids have high salaries, they may very well not qualify for aid. In that case, it doesn’t matter whose 529 account the money is in.