Q about non-custodial-owned 529 distributions

CSSdad
Tue, 04 Sep 2018 13:22:02 +0000

My son is applying to several CSS-profile schools. They all also require the FAFSA.

I am a non-custodial parent, and I have a 529 in my name, and I’m hoping I am correct about the following 3 claims:

1. the asset is ignored in the FAFSA form itself (since the owner is neither the student nor the custodial parent), however FAFSA will count it as student income (20% influence on EFC) when a distribution is taken

2. on the CSS-profile form, the asset is counted as a non-custodial parent asset, and when a distribution is taken, CSS-profile will not count it as student income, since the money was already declared as a parental asset

3. Schools that require both the CSS-profile as well as the FAFSA do not really look at the FAFSA-based EFC as a guide for determining aid, since they believe the CSS-profile to be more accurate

Thanks for your help and honest critique of the above three claims!