Fafsa & Ugma accounts

swimcatsmom
Fri, 02 Jan 2009 14:34:14 +0000

Section 529: A Good Plan Just Got Better : published at CarolinaNewswire.com - Stay on top of the day’s business & technology news also indicates what vballmom said above: that student-owned 529 plans do not count in the 2008-2009 year but will count as a student asset for the 2009-2010 FAFSA and thereon after.

No. There was a loophole in the rules for 2008-2009 that meant 529s in a student’s name did not have to be reported. This was corrected and for 2009-2010 student owned 529s (including those for any siblings) are reported as parent assets.

Here is a link to the preliminary 2009-2010 paper FAFSA which has more detailed instructions. The final one doesn’t seem to be out there that I can find.
http://ifap.ed.gov/fafsa/attachments/0801SummaryChanges0910FAFSA.pdf
Page 2 has the instructions about assets



Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of **529 prepaid tuition **plans. For a student who does not report parental information, the accounts owned by the student (and the student’s spouse) are reported as student investments in question 42. **For a student who must report parental information, the accounts are reported as parental investments in question 92, including all accounts owned by the student and all accounts owned by the parents for any member of the household. **