How does my ex's 529 affect FAFSA when I'm the primary contributor for my kids?

the 529 only matters on fafsa if its in the students name or the parent who filled out the form. if its in ur ex's name and hes not on the fafsa then it doesnt count. my ex has one for our daughter but it didnt effect anything

The previous commenter is correct. For the 2024-2025 FAFSA and beyond, only the 529 accounts owned by the student or the parent who completes the FAFSA are considered in the SAI (Student Aid Index) calculation. Your ex-spouse's 529 plan is not reported on your FAFSA if you're the parent completing the form. However, there are a few things to note: 1. If your son withdraws money from that 529 for educational expenses, that withdrawal could be considered untaxed income to the student in future FAFSA applications 2. If your divorce decree specifies anything about the 529 usage, that's a separate legal matter 3. For schools that require the CSS Profile (mainly private colleges), they might ask about non-custodial parent assets including 529 plans

Yes, it's generally advisable to use 529 funds before taking on loans. Since the 529 is specifically designed for education expenses and the money grows tax-free when used for qualified expenses, it makes financial sense to utilize these funds first. Using the 529 funds before loans would reduce the amount of debt your son needs to take on. The $5,500 in Direct Loans will accrue interest (though subsidized portions won't accrue interest while he's in school). If possible, use the 529 to cover expenses and reduce how much of that loan he needs to accept.

That's exactly what I'm worried about. My ex isn't the most cooperative and might want to control when and how the money is used. Any suggestions for approaching this conversation with him?

I worked in financial aid for 10 years and see this situation frequently. Here's what you should know about managing your son's financial aid with your ex's 529 plan: 1. As others mentioned, the 529 owned by your ex doesn't impact your FAFSA results since you're the filing parent 2. The $3900 grant is likely a Pell Grant based on your income information 3. The $5500 loan is the standard first-year Direct Loan amount ($3500 subsidized + $2000 unsubsidized typically) 4. For using the 529 funds: your ex will need to request distributions directly to the school or reimburse qualified expenses with documentation 5. If your ex is difficult about releasing funds, focus on the tax advantages of using the 529 properly versus potential penalties for non-qualified withdrawals Your son's financial aid package sounds standard for someone in your income range. The fact that you received Pell Grant eligibility is good news.

Hey, just wanted to share that I was in your exact situation last year with my daughter's FAFSA and my ex's 529. I spent HOURS trying to get answers from the financial aid office at her college, kept getting disconnected, put on hold forever, or getting different answers from different people. Super frustrating!!! I eventually found this service called Claimyr (claimyr.com) that got me through to a Federal Student Aid agent in about 10 minutes instead of the 2+ hours I was waiting before. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The FSA agent confirmed everything that people are saying here - ex's 529 doesn't affect FAFSA if you're the filing parent. Such a relief to hear it officially! Might be worth calling to get it confirmed for your specific situation.

urrrr everyone is being so nice but tbh ur ex sounds like a jerk lol. hasn't helped financially but has a college fund?? make him use that 529 BEFORE any loans!!! those loans will be in ur sons name not urs!! why should ur kid be in debt when theres money sitting there?? stand ur ground!!

wait i just remembered something important. when the 529 money gets used it can effect next years fafsa as student income so maybe talk to financial aid office before using it all at once

Update: I finally talked to my ex about the 529. He agreed to withdraw $5000 this year to cover some expenses so our son won't need the full loan amount. The conversation wasn't pleasant, but we got a result. Thanks everyone for your advice - it really helped me approach this more confidently with the right information!

Congratulations on getting that resolved! That's a significant win - $5000 less in debt will save your son quite a bit in interest over the repayment period. It sounds like having the right information really made a difference in how you approached the conversation. Even when co-parenting communication is challenging, focusing on the concrete benefits for your child can help cut through the personal stuff. Hope the rest of the college funding goes smoothly!

Wow, what a journey you've been on with this! Reading through your whole experience really shows how confusing financial aid can be, especially when dealing with divorced parents and 529 plans. It's so encouraging to see that you got a positive outcome - $5000 less in loans is absolutely huge for your son's financial future. Your story is really valuable for other parents in similar situations. The key takeaways seem to be: 1) the non-custodial parent's 529 doesn't affect FAFSA calculations, 2) it's worth having those difficult conversations because the financial benefit is real, and 3) approaching it from the perspective of what's best for the child can help cut through personal conflicts. Thanks for sharing the update and congrats on advocating so well for your son!

This is such an inspiring thread to read as someone who's just starting to navigate the FAFSA process with my own teenager! Sophie, your persistence really paid off - getting $5000 off your son's loan burden is incredible. I'm taking notes on all the expert advice here, especially about how 529 plans work with divorced parents. The tip about having the non-custodial parent send funds directly to the school is brilliant - removes so much potential conflict. Thanks to everyone who contributed their knowledge here, this is exactly the kind of real-world guidance that makes all the difference when you're trying to figure out college financing!