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How a Grandparent-owned 529 Account Affects Need-based Financial Aid

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The cost of college has risen so high that many families are relying on two generations to help cover expenses.

There are the parents, who are increasingly saving in 529 college-savings plans, where earnings are tax-free if used for qualified educational expenses. Then there are the grandparents, who are joining in the mission to get children through college with less debt. They, too, are saving in 529 plans.

Here's the problem. Many grandparents become concerned that their 529 contributions will adversely affect their grandchildren in the federal financial-aid process.

Read more at The Washington Post.


Smart Savers Blog


Resources to help you learn

Virginia529 offers free, in-person information sessions at locations across Virginia. These hour-long sessions highlight the program’s three plans, explain the benefits to account owners and give you the chance to get your questions answered. If you don’t live near one of our in-person sessions, Virginia529 offers online webinars where you can learn more from the comfort of your own home.