<p>However, my worry is that the SCHOOL could still consider the 529 a child’s asset, and then deduct that from any financial aid. I have not been able to find a satisfactory answer to that question: D’s grandmother owns the 529. If we use the money for D’s tuition, I am afraid it will trigger institutional, professional judgment (whatever that is), and that will lower her financial aid for the following year(s). So, we are considering using the 529 in grandma’s name for the last year of tuition ONLY. We would not take the loans, and we would use as much as possible for the final year. Whatever is left, grandma can either transfer to another grandchild, or my D can use for grad school. Does this make sense?</p>