FAFSA vs CSS Profile: UGMA account for 18-year-old - report as parent or student asset?

You've actually made a reporting error on the CSS Profile. UGMA accounts should ALWAYS be reported as student assets on both the FAFSA and CSS Profile, regardless of who is technically the custodian or whose name it's under. The reason is that legally, the money in a UGMA belongs to the minor (your daughter) even though adults control it until they reach the age of majority in your state. This is a common misunderstanding! And yes, you're right to be concerned about the difference in assessment rates. On the FAFSA, student assets are assessed at 20% while parent assets are assessed at a maximum of 5.64%. So reporting correctly may impact her SAI (Student Aid Index) calculation.

i think ur fine actually!!! my uncle works in financial aid office and he told me that UGMA accounts switch to parent assets if the kid isnt 18 yet... so you probably did it right on the CSS if she's still 17, but you'll need to do it different on FAFSA if she turns 18 before you submit that one

we did this wrong last year lol and had to do a whole correction thing. suuuuper annoying because it messed up our kids aid package initially and we had to get it recalculated. definitely put it as her asset!!!

Ran into this exact situation with my son last year. UGMA/UTMA accounts are considered the child's asset because technically the money belongs to them even though you're managing it until they reach the age specified in your state (18 or 21 depending on state). It doesn't matter whose name is on the account right now. On both the CSS Profile AND FAFSA, it should be listed as the student's asset. The problem is that student assets are assessed at 20% for the FAFSA SAI calculation while parent assets are only assessed at max 5.64%. For CSS Profile schools, the assessment rates vary by institution but student assets are always counted more heavily.

Yes, you made a mistake on the CSS Profile. UGMA/UTMA accounts are ALWAYS the student's asset regardless of who is managing them as custodian. This is because legally the money belongs to your daughter, even though you control it until she reaches the age of majority. The CSS Profile and FAFSA both treat these accounts the same way - as student assets. But don't panic! You can submit a correction to the CSS Profile. Contact the College Board and explain the situation. I'd also recommend contacting the financial aid offices at each school your daughter applied to and let them know about the reporting error. They deal with this kind of thing all the time and can guide you through any correction process for their institution. For the FAFSA, just make sure you report it correctly as a student asset from the start.

Just to add some technical clarity here: If your daughter turns 18 in February, you should report the UGMA as her asset for both CSS Profile and FAFSA. The reference point for the 2025-2026 FAFSA is the date you submit the form, so if you're submitting after she turns 18, it's reported as hers. Even if you submit before she turns 18, it's still her asset because UGMA/UTMA accounts are always considered the student's assets regardless of age. The impact? Student assets are assessed at 20% on the FAFSA and similarly high rates on the CSS Profile, compared to parent assets (5.64% maximum on FAFSA). So if the UGMA has $20,000, reporting it correctly as a student asset would increase her SAI by approximately $4,000 compared to if it were counted as a parent asset.

I've been having a similar issue trying to reach FAFSA's help line to clarify some asset reporting questions. After getting disconnected multiple times, I finally used Claimyr (claimyr.com) to get through to an actual FSA agent who explained all the asset reporting rules to me. They have a service that holds your place in line and calls you when an agent is available. Saved me hours of frustration! You can see how it works in their video demo: https://youtu.be/TbC8dZQWYNQ

I HATE how they penalize families for saving for college!!! We saved responsibly in a UGMA for our kid and now they count it against her at a HIGHER rate than our own assets? The whole system is messed up - punishing responsible parents while rewarding those who didn't save. My daughter's friend's parents have a boat and vacation home but no college savings and they got way more aid than we did. The financial aid system is BROKEN.

Wait I'm confused does this apply to other types of accounts too? My son has a savings account we opened when he was little that we've been putting money in for him. Is that going to be assessed at the higher student rate too???

Thanks everyone for the helpful responses! I've contacted the College Board about correcting the CSS Profile and will make sure to report it correctly on the FAFSA. One quick follow-up question - if the UGMA is invested in stocks/mutual funds, do I just report the current market value as of the date I'm filling out the FAFSA?

Just wanted to chime in as someone who went through this exact situation last year! You're absolutely right to be concerned - UGMA accounts are always reported as student assets on both FAFSA and CSS Profile, regardless of age or who manages the account. The money legally belongs to your daughter even though you're the custodian. I made the same mistake initially and had to correct both forms. For the CSS Profile correction, I called College Board and they walked me through updating it online. It wasn't as scary as I thought it would be! For schools that had already received the original CSS Profile, I sent a brief email to each financial aid office explaining the correction - they were very understanding since this is a common error. The impact on aid depends on the account balance, but with the 20% assessment rate on student assets versus the much lower parent asset rate, it can definitely affect your Expected Family Contribution. Still better to report it correctly than risk verification issues later!