So if he includes the account as is, 20% will be tapped for your family contribution (could be different depending on the college…it could be more). So for $7000, your EFC would increase by $1400.
Did this kid qualify for the simplified needs test or auto $0 EFC? If so, IIRC, assets aren’t counted for FAFSA purposes…so this wouldn’t matter at all.
If he didn’t qualify for auto $0 EFC or simplified needs test…his Pell Grant would be reduced by $1400…but that could come out of the UGMA account to cover that amount, right? Isn’t helping with college costs what the grand parents set this up for?
Profile schools don’t have an auto $0 or simplified needs test…so the asset would “count”. But again I say…isn’t this what the account was set up to do? Help with college costs?
It’s unlikely that your parent out of pocket expenses will increase…the difference will come from the UGMA…a gift.
It’s March 10…and you are just now completing the Profile? Is this kid a transfer student? Hard to believe that a Profile school deadline for that form hasn’t passed.