If the owner of a college savings account is the parent, is the account reported on the FAFSA as an asset of the parent or the student?
A college savings account owned by the parent should be treated in the federal need analysis as an asset of the parent. Based on the fact that the student can be removed as the beneficiary of an account at any time and the account owner can close the account and use the proceeds for another purpose, the assets held in college savings plan accounts owned by a parent are assets of the parent. Thus, in the case of a dependent student where the parent owns the account in the New York 529 Program, the assets in the account are reported in the category of “Investments” on the FAFSA.
Related Questions
- If the owner of a college savings account is the parent, is the account reported on the FAFSA as an asset of the parent or the student?
- How is the college savings account reported on the FAFSA if the student is both Account Owner and Designated Beneficiary?
- How is the account reported on the FAFSA if the Account Owner is someone other than the student or parent?
