What is the point of saving for college for your children if it disqualifies them from getting govt aid. The amount you save (say $40,000) isn’t going to cover all of their expenses for a 4 yr public program in 2017.
Please enlighten me, does having a 529 account disqualify you from getting federal aid. If not, whats the least and max amount I can have
in the account (% wise) without it interfering with federal aid.
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No, having a 529 plan does NOT disqualify your child from getting federal financial aid. Anyone can get “financial aid” regardless of income or assets in the form of federal student loans.
There is no “max amount” you can have or earn. No magic number.
Now, it occurs to me you may be thinking that “financial aid” is just FREE grants (which it is not, it also includes loans) but I’d like to elaborate in case this is what you are referring.
It is my experience, that a family who has wherewithal and the money to save for a 529 plan is way over the thresh hold of being “Poor” according to the federal government long before the assets are calculated into the EFC formula. So don’t NOT invest in your child’s future because of this fear of not getting free money. It’s not worth the risk and the money they do actually get from grants is always very minimal compared to the tax benefits and long term savings of a 529.
Hope this helps.
Hi, You are going to worry your self to death about this matter. You do not know what is going to be available in 2017.Things are going to change with the times. Continue to put money way for the children’s future schooling. This way they will have money to decide what they are going to do at that point. Relax ,in this crazy world you,do not know what the future holds. Good Luck