Fafsa & Ugma accounts

Lunar_eclipse
Fri, 02 Jan 2009 15:05:56 +0000

Infinity,

I completed the FAFSA and PROFILE last year for the first time. I understand your frustration.

For FAFSA 2009-2010:

“Normal” 529 plans (parent owner, child beneficiary) are reported as PARENT assets. This means that if you have (own) an account for each different child, you report them all since you, the parent, own them all.

UGMA/UTMA 529 plans (student owner, any beneficiary-but usually student, parent custodian) are student assets but REPORTED as PARENT assets for Dependent Students. For Independent students they are are reported as student assets.

As far as I can tell, any other UGMA/UTMA accounts (student owner, parent custodian) are reported as STUDENT ASSETS.

PARENTAL ASSETS
See the statements below on the FAFSA 2009-2010 on-line help under What is your parents’ net worth of current investments.

"Investments include real estate (do not include the home you live in), trust funds UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.

Note: UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regarless of the student’s dependency status.

Investments also include qualified educational benefits or education savings ac****s such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans. Note: Students who must report parental information on this form should report all qualified educational benefits or education savings accounts owned by the parents and/or the dependent student as part of the parental assets in question 92."

STUDENT ASSETS
See the statements below on the FAFSA 2009-2010 on-line help under What is your currnet net worth of investments.

"Investments include real estate (do not include the home you live in), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.

Note: UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regardless of the student’s dependency status.

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.

If you are not required to report parental information and you own (or if married, your spouse owns) any of these qualified educational benefit plans report the current balance of the plans as a student/spouse asset in question 42. The amount to be reported for a prepaid tuition plan is the “refund value” of the plan."