<p>Student savings are assessed at the rate of 20% per year for FAFSA. There is no asset protection allowance for student assets.</p>
<p>Parent savings and any student-owned 529 accounts are assessed at the rate of 5.6% for FAFSA. There is an asset protection allowance for parent savings, the formula for which takes into account the age of the older parent. It’s generally between 35,000 and 50,000. This means the asset protection allowance is subtracted from the total parent asset number, and the remainder is multiplied by 5.6% to get the parent contribution from assets.</p>
<p>(cross-posted w/swimcatsmom)</p>