Does a 529 plan impact the beneficiarys financial aid application?
Your 529 savings account is treated as an asset of the parent or other account owner in determining eligibility for a child’s federal financial aid. And, your expected contribution towards your child’s college costs will include 5.6%, or less, of the value of your account for each academic year. This is far more favorable than the 35% applied to assets owned in a child’s name or in a custodial account.
