Yes, I think it makes sense as a strategy for less selective regional schools, particularly those that might face a more existential set of concerns around enrollment and long-term financial stability.
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The FAFSA does ask about parent owned 529âs - it is the question on non retirement investments after the checking/savings question. Now I think many people are going to miss that only 529âs which THAT student is the beneficiary need to be included in the total. So 529âs with another child as beneficiary are omitted.
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I included it under sonâs account info.
If on the parent FAFSA form it is a 5.64% asset, but if put as a student asset then itâs 20%.
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@Kelsmom can clarify, but I thought all 529 accounts were assessed as parent assets (5.6%, not 20%) regardless of the owner. @BelknapPoint might know too.
Really @kelsmom has the answers!
Yup.
- For dependent students, education savings accounts will only be counted as a parental asset if the account is designated for the student. Previously, if a parent had education savings accounts for their other children, the value of those was also required to be counted.*
In the FAFSA instructions, it states that dependent student 529 accounts are considered a parent asset (independent student 529 accounts are an asset of the student) and the parent is not to report education savings accounts in the name of children other than the student whose FAFSA information they are providing.
Here is a link to the FAFSA pdf: https://studentaid.gov/sites/default/files/2024-25-fafsa.pdf. Read the instructions for questions 22 and 40.
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Yes but it sounds like she put the 529 value as a student asset - that is where the 20% would come in.
LIke I said, if it is listed as a parent asset it is 5.6%.
But what if the student is the owner of the 529 (which is highly unusual but someone has done it)? Then, the student is the owner and the beneficiary. In that case, how can the 529 be on the parent asset form?
*Edit = I found the answer, if student is a dependent then the 529 is an asset of the parent even if the student is the owner.
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Why would she do that? Just a mistake? (Not sure who you are talking about)
@kelsmom, please tell folks where to enter their 529 accounts.
Can assets be corrected on this FAFSA form? If so, and there is an error, it needs to be corrected.
I was able to go back and list the 529 as a parental asset.
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Thatâs an awesome book!
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I knew that 529 was to be included in the non-retirement assets, and was pleasantly surprised that they only wanted the 529 amount set aside for that particular student.
Clicking on all the little question marks next to each section is always a good idea.
It is also repeated in the tips of what not to include.
I strongly recommend reading the instructions under the 
tabs for each section.
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S24 was accepted by our state flagship today. The school has a somewhat annoying rolling early action notification process, so he has been waiting for this notification for a while.
He has now completed 11 applications with 5 more to go. He does not go back to school until next week, which has been very helpful for his application completion rate. Most of the remaining applications are fairly easy because he can re-use many of his existing supplements. But there is one scholarship application that will be more tedious with two new, longer essays. I hope he wonât run out of steam before that is completed.
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My son got an email from Lehigh today that theyâve extended their regular decision deadline to January 7th. I am sharing so it is more widely known.
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Also Colby extended to January 5th.
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D24 requested a college sweatshirt today!
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Also, the new FAFSA website sucks.
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Is anyone having issues with entering assets, bank accounts? It only asks abt 2 questions- foreign income and scholarships. Iâve literally been on phone with them all day , now they say possibly due to iPhone, Mac Pro . Just used a dell and same thing happening
HELP
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Thatâs all they ask. It will link to irs for data on income etc.
So most people will only enter foreign income, checking/savings accounts, non-retirement investment accounts, any second homes /farms, and 529.
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I donât get anything about bank accounts or assets at all.
@shmom41 thanks to your earlier post re: 529 for the student (vs other kiddos), otherwise i wouldâve missed it.
the pdf fafsa 2024-25 form has clarifying info on page 22:
https://studentaid.gov/sites/default/files/2024-25-fafsa.pdf
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