Will owning a nowU 529 account hurt the beneficiarys eligibility for financial aid?
State financial aid – A nowU account is not included in determining eligibility for Pennsylvania state financial aid programs. Other 529 plans are. If you or the beneficiary is not a Pennsylvania resident, check with your state to determine its financial aid policies. Federal financial aid – Your nowU account affects the beneficiary’s eligibility for federal financial aid in the following ways: • If the account owner is a custodial parent: Like other parental assets (such as bank savings accounts or mutual funds), only 3% to 6% of money in a nowU account is considered to be available for college expenses. • If the account owner is also the beneficiary and a dependant student: None of the money in the plan is considered to be available for college expenses. • If the account owner is someone other than the parent or student: None of the account is considered available to pay for college. Be sure to check with the schools you are considering regarding their criteria for financial aid.
Related Questions
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