Draft 2007-08 FAFSA describes 529 and ESA treatment
The U.S. Department of Education has released a draft of the 2007-08 FAFSA. Instructions state that the applicant is to report as investments the value of "Coverdell savings accounts, college savings plans, and the refund value of prepaid tuition plans." It also instructs: "For more information about reporting education savings plans, call 1-800-433-3243."
However, the instructions also include a note for students who are reporting parental information on the FAFSA (i.e. dependent students):
"Education accounts owned by your parents, including Coverdell savings accounts, 529 college savings plans, and the refund value of a 529 or state prepaid tuition plans, are reported as an asset of your parents (question 92). Do not report the value of these accounts if the student is the owner."
Return to 529 News centerHowever, the instructions also include a note for students who are reporting parental information on the FAFSA (i.e. dependent students):
"Education accounts owned by your parents, including Coverdell savings accounts, 529 college savings plans, and the refund value of a 529 or state prepaid tuition plans, are reported as an asset of your parents (question 92). Do not report the value of these accounts if the student is the owner."