Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
How 529 Plans Impact Financial Aid Eligibility
In this episode, Lucas and Luna break down the surprisingly favorable treatment of 529 plans on the FAFSA. Under the current formula, a parent-owned 529 is assessed at a maximum of 5.64% — meaning only $564 of every $10,000 counts against aid eligibility. They compare this to custodial accounts or student-owned assets, which are assessed at 20%, and explain how ownership structure (parent, grandparent, or student) can make or break a financial aid package. The hosts also touch on the impact of the SECURE 2.0 Act and the recent FAFSA simplification. If you've ever worried that saving in a…
The skinny
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