Fafsa & Ugma accounts

vballmom
Tue, 26 Feb 2008 19:45:38 +0000

The student’s UGMA account is an asset of the student and should be reported as a student asset for FAFSA. The UGMA accounts of the student’s 2 siblings are not reportable on the first student’s FAFSA. I think that was the original poster’s question.

From [FinAid | Financial Aid Applications | Maximizing Your Aid Eligibility](http://www.finaid.org/fafsa/maximize.phtml)

The assets of other children are not considered by the need analysis formula. So putting parent assets in the name of a younger (or older) sibling can help shelter them from the need analysis. On the other hand, when that child enrolls in college, his or her assets will be assessed at the usual rate for students.

Assuming that the family follows a policy of spending the student’s assets first, putting assets in the name of a younger child might yield a small increase in the family’s overall eligibility for financial aid. The calculations are so complicated, however, and require so many questionable assumptions that this strategy is probably not worthwhile. The only case in which this strategy might work is when the younger sibling will never attend college, as might happen with a severely disabled child. On the other hand, many schools now ask for the assets owned by the student’s siblings, so this strategy may affect the awarding of institutional funds.