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."
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