FAFSA mistake: Forgot to report 529 plan - Can we fix it now & do we need to?

You definitely need to correct this. Log into studentaid.gov, go to your son's FAFSA application, and select "Make FAFSA Corrections." You can update the asset information there and resubmit. The system will allow corrections for a certain period after submission. As for whether it matters - YES, it absolutely does. Even if you don't expect need-based aid, incorrect information on the FAFSA is considered misrepresentation and could result in your son being disqualified from ALL federal student aid, including unsubsidized loans which aren't need-based. Some schools also use FAFSA for merit scholarship consideration, and they could flag your application for verification if they have reason to believe information is missing.

Honeslty prob not a big deal. my parents make like 140k and we got nothing anyway so your husband is prolly right. The whole system is rigged anyway, they expect middle class to pay full price while givin all the money to rich ppl who know how to hide assets or poor families

We were in the EXACT same situation last year!!! My wife reported everything but somehow missed our daughter's 529 (about $25k). When we realized the mistake, I panicked and called the financial aid office at 3 different schools she applied to. TWO of them said it probably wouldn't affect her aid package much but that we should correct it anyway, while ONE said they'd likely flag her for verification if we didn't fix it which would delay everything. The correction process online was super frustrating though - the website kept timing out when we tried to make changes! After trying for 2 days I gave up and tried calling FSA directly which was another nightmare - endless hold times and disconnections. I finally used this service called Claimyr (claimyr.com) that someone in my office recommended, and they got me connected to an FSA agent in about 20 minutes. The agent walked me through making the correction over the phone. Their video shows how it works: https://youtu.be/TbC8dZQWYNQ For what it's worth, fixing it didn't change our daughter's aid package at all - we still got the same merit scholarships and loan options.

lol love when couples argue about this stuff on here. My vote is with the wife on this one. Always fix mistakes on govt forms!!! 👍

Financial aid administrator here. This is a common question, so let me clarify a few points: 1. YES, you absolutely need to correct your FAFSA. Even if you don't qualify for need-based aid, having accurate information is required. The FAFSA is signed under penalty of perjury. 2. For a family with your income level, the 529 assets may or may not impact your SAI (Student Aid Index, formerly EFC) depending on your complete financial picture. 3. Remember that parent-owned 529 plans are reported as parental assets on the FAFSA. Under the 2024-2025 FAFSA, parental assets are assessed at a maximum rate of 5.64% when calculating SAI. So a $32,000 529 plan would increase your SAI by a maximum of about $1,800. 4. The proper method to correct is through the correction process at studentaid.gov. Go to your FAFSA, select "Make FAFSA Corrections," and update the asset section. 5. No need to provide an explanation for the correction - just update the numbers accurately. Lastly, even if you don't qualify for need-based federal aid, accurate FAFSA information is critical for institutional aid, state grants, and even some merit scholarships at certain schools.

Ugh I'm in the same boat except it's been TWO MONTHS since I realized I messed up our FAFSA!!! Been trying to correct it but the website is a NIGHTMARE. Every time I try to submit the correction it says "your request cannot be processed at this time" with no explanation!! Called the number EIGHT TIMES and either get disconnected or told the wait is over 3 hours. This system is BROKEN!!! 😡😡😡

my cousin works in financial aid at a community college and he says they basically never verify 529 accounts unless something looks really suspicious on your application. but technically ur supposed to report everything. maybe just see if u get selected for verification and fix it then?

Update: I was able to log in and make the correction! For anyone dealing with this in the future, I had to: 1. Log into studentaid.gov with my FSA ID (not my son's) 2. Go to the FAFSA form section 3. Select "Make FAFSA Corrections" 4. Navigate to the "Financial Information" section 5. Update the asset information to include the 529 6. Re-sign and submit The confirmation said it will take 3-5 days to process the correction. I showed my husband all your responses and he admits I was right that we needed to fix it regardless of whether we'll get aid. Thanks everyone for your help!

Glad you got it sorted out! Just wanted to add for anyone else reading this thread - it's really important to double-check your FAFSA before submitting, but don't panic if you make an honest mistake like this. The correction process exists exactly for these situations. One tip: if you have multiple kids going through this process in future years, consider making a simple checklist of all your assets (checking, savings, 529s, investment accounts, etc.) before you start filling out the form. We started doing this after missing our younger son's UTMA account one year and it's been a lifesaver! Also, your husband will probably appreciate knowing that being thorough and accurate from the start actually protects your family from potential issues down the road. Better safe than sorry with federal forms!

As someone who just went through this exact situation with my daughter's FAFSA, I can confirm that you absolutely made the right choice to correct it! We had a similar "discussion" in our household about whether a mistake mattered if we weren't expecting aid anyway. What really convinced my spouse was learning that even unsubsidized federal loans (which aren't need-based) could be jeopardized by inaccurate reporting. Plus, many schools use FAFSA data for their own institutional scholarships and grants, which often have different income thresholds than federal aid. The correction process you described is spot-on - that's exactly what we had to do too. One thing I'd add is to keep a screenshot or printout of your confirmation page showing the correction was submitted successfully. Our financial aid counselor at my daughter's school recommended this just in case there are any questions later during verification. Sounds like you and your husband are a great team for working through this together! These FAFSA forms can definitely test a marriage, but getting it right the first time (or correcting it quickly like you did) saves so much stress later in the process.

As a newcomer to this community, I just wanted to say how helpful this entire thread has been! I'm currently preparing my daughter's FAFSA for next year and had no idea about the importance of reporting 529 plans accurately, or that there could be serious legal consequences for omitting assets even if you don't expect to receive aid. The step-by-step correction process that Amina shared is incredibly useful, and I really appreciate all the experts who chimed in with detailed explanations about asset assessment rates and verification procedures. I'm definitely going to follow Mia's advice about creating a comprehensive asset checklist before we submit our FAFSA. It's also reassuring to see how supportive this community is when people make honest mistakes. Financial aid forms can be so overwhelming, especially for first-time parents navigating the system. Thanks to everyone who contributed their knowledge and experience - it's given me much more confidence about handling our own FAFSA process correctly!

As someone who's helped dozens of families through FAFSA corrections over the years, I want to emphasize what a smart decision you made to fix this promptly! The stress and arguments these forms cause between spouses is so common - you're definitely not alone there. One additional tip for the future: when the new FAFSA comes out each year (usually October 1st), I always recommend families gather ALL their financial documents first before even logging in. This includes bank statements, investment account statements, 529 statements, tax returns, etc. Having everything in one place prevents exactly this type of oversight. Also, for anyone reading this thread who might be in a similar situation - don't let the technical glitches with studentaid.gov discourage you from making necessary corrections. The system has been notoriously buggy, but persistence usually pays off. If you're having trouble with the online portal, calling during off-peak hours (early morning or late evening) can sometimes get you through faster. Great job advocating for doing the right thing, and kudos to your husband for being willing to listen and learn. That's exactly the kind of teamwork that will serve your family well throughout this college journey!

As a newcomer to this community and someone who will be dealing with FAFSA forms for the first time next year, I found this entire discussion incredibly enlightening! The level of detailed, practical advice here is amazing. What really struck me is how this thread demonstrates the importance of accuracy over assumptions about aid eligibility. The distinction between "we probably won't get aid anyway" versus "we're legally required to report accurately" is so crucial - thank you to everyone who emphasized that point. I'm definitely implementing several strategies I learned here: creating a comprehensive asset checklist before starting, gathering all documents first, taking screenshots of confirmations, and understanding that corrections are normal and manageable when done promptly. The technical details about the 5.64% assessment rate and the potential impact on institutional aid were particularly valuable. It's also reassuring to see how supportive this community is when people encounter problems. The FAFSA process seems daunting, but knowing there are knowledgeable people willing to share their experiences and expertise makes it feel much more manageable. Thanks to everyone who contributed - this thread should be bookmarked as a resource for anyone dealing with FAFSA corrections!