Where to report sibling's 529 plan on FAFSA? Already submitted daughter's application
I just finished submitting my daughter's FAFSA for next year and now I'm panicking about a potential mistake. I didn't report her 529 plan because she's using it now (so I think that's correct), but we still have a 529 plan for my younger son who's still in high school. I couldn't find anywhere on the form to include this second 529 plan. Do I need to report that somewhere? If so, which section would that go in? Is this something I need to fix once her application is processed? Really hoping I didn't mess up her financial aid eligibility by missing this.
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Raul Neal
For the 2024-2025 FAFSA, you don't need to report ANY 529 plans as assets anymore! This is one of the big changes in the new FAFSA Simplification Act. Previously 529s owned by the parent were reported as parent assets, but now they're completely excluded from the SAI calculation. So you actually did it correctly by not reporting either 529 plan.
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Heather Tyson
AuthorWait, really? That's a huge relief! I've been stressing about this all night. So even though my son's 529 still has around $43,000 in it, I don't need to report that anywhere? That seems too good to be true...
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Jenna Sloan
my daughters fafsa got rejected b/c i didnt list ALL assets so idk if the other person is right... i had to refile and include everything we owned pretty much
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Christian Burns
That's not quite accurate. The FAFSA doesn't get "rejected" for missing assets - it would be processed, but might be selected for verification later. And while the person above is correct that 529 plans are no longer reported on the FAFSA, you still need to report other assets like checking/savings accounts, investments, and business assets if applicable. The 529 exclusion is specifically part of the FAFSA Simplification Act changes.
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Sasha Reese
I just went through this EXACT situation last month! The Federal Student Aid website kept timing out when I tried calling to ask about my son's 529 plan. After THREE DAYS of trying, I finally used Claimyr (claimyr.com) to get through to a live agent. They have this system that holds your place in line and calls you when an agent is available. Saved me hours of frustration! Their video demo shows how it works: https://youtu.be/TbC8dZQWYNQ Anyway, the agent confirmed 529 plans owned by parents are NOT reported on the FAFSA anymore. Total game-changer for our family planning!
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Muhammad Hobbs
does this service actually work? i've been trying to get thru to ask about my daughters verification for like a week now
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Noland Curtis
HOLD UP - there's a lot of misinfo here. The 529 rules ARE different now BUT there's a big catch people aren't mentioning. If the 529 is owned by a GRANDPARENT, it DOES still impact aid. When those funds are distributed, they count as UNTAXED INCOME to the student in future aid calculations. So if your son's 529 is owned by someone other than you or your spouse, that's a different situation!!
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Raul Neal
That's actually no longer true either. The new FAFSA changes eliminated the grandparent-owned 529 distribution penalty too. Grandparent-owned 529 distributions no longer count as untaxed income to the student. This change happened alongside the removal of 529s from the asset questions.
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Heather Tyson
Thank you all for the helpful responses! I feel much better knowing I didn't mess up. Quick follow-up question - does anyone know if the CSS Profile (which some private schools require) still asks about 529 plans? My daughter is applying to some schools that require that form too.
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Christian Burns
Yes, the CSS Profile DOES still collect information about 529 plans. The FAFSA simplification doesn't apply to the CSS Profile, which is used by many private colleges to determine institutional aid. On the CSS Profile, you'll need to report all 529 plans that you own for any of your children. The impact on aid will depend on each school's institutional methodology.
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Diez Ellis
wait i'm confused...if 529s don't count on FAFSA anymore, does that mean I can just shift all our savings into 529s right before applying and get more financial aid????????????
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Raul Neal
Technically yes, but be careful. While 529s aren't reported on the FAFSA, suddenly moving large sums of money right before applying could potentially trigger verification if the school notices unusual patterns in your finances. Also, remember that 529 funds can only be used for qualified educational expenses without penalties, so don't put money in there you might need for other purposes.
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Vanessa Figueroa
you know whats RIDICULOUS about all this? the system keeps changing every couple years so nobody actually knows what theyre doing. i spent hours researching the rules for my oldest kid and now with my youngest its all different. and the financial aid offices at schools give conflicting info too!!! its almost like they WANT us to make mistakes 🤬
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Jenna Sloan
for real!!! i ended up paying an advisor $300 to help with my kids fafsa bc i was so confused and stressed about it
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Christian Burns
To summarize for the original poster: 1. You do NOT need to report 529 plans on the 2024-2025 FAFSA (whether they're for your daughter or son) 2. You DO need to report them on the CSS Profile if any of your daughter's schools require it 3. There's no need to fix your FAFSA submission - you completed it correctly 4. If you're still concerned, you can always call Federal Student Aid directly to confirm (1-800-433-3243) Hope this helps clear things up!
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Heather Tyson
AuthorThank you so much for this clear summary! This was exactly what I needed. I'll make sure to include both 529 plans on the CSS Profile for the two private schools. Such a relief to know I don't need to fix anything on the FAFSA!
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Kevin Bell
As someone who just went through this process with my twin daughters last year, I can confirm what others have said - you handled the 529 reporting correctly! The FAFSA Simplification Act really did eliminate the need to report parent-owned 529 plans. One thing I'd add is to keep good records of your 529 account statements anyway, especially if your daughter's schools require the CSS Profile. Some schools also do their own verification processes and might ask for additional documentation. Also, if you have any other kids who will be applying in future years, it's helpful to have all this info organized. The stress you're feeling is totally normal - I literally lost sleep over whether I filled everything out correctly! But it sounds like you did everything right.
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Oliver Schulz
Just wanted to chime in as another parent who was completely stressed about this same issue! I submitted my son's FAFSA in January and had the exact same panic about not reporting his younger sister's 529 plan. I actually called the Federal Student Aid helpline three times because I was so worried I'd messed up his aid eligibility. The good news is that everyone here is absolutely right - you don't need to report ANY 529 plans on the FAFSA anymore, regardless of which child they're for. The agent I finally spoke to was very clear about this change. What really helped me was printing out the official FAFSA completion guide from studentaid.gov and highlighting all the asset questions that specifically mention what you do and don't need to report. Seeing it in writing from the official source gave me peace of mind. You definitely completed your daughter's application correctly!
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Derek Olson
Thank you for sharing your experience! It's so helpful to hear from other parents who went through the same panic. I think I'm going to do exactly what you suggested and print out the official FAFSA completion guide to keep for reference. Having that official documentation will definitely help me feel more confident about future applications when my son applies in a few years. I really appreciate everyone taking the time to share their experiences and advice - this community is amazing!
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