Financial aid and scholarships

Assets in a parent-owned 529 account have less of an impact on financial aid than some other savings methods. The Student Aid Index (SAI) calculations for financial aid generally factor parent assets outside of retirement savings at approximately 5%, whereas student assets are generally factored in at 20% or more. Therefore, a parent-owned 529 account may have less of an impact on financial aid eligibility than assets owned by the student. 1