The US News & World Report article on how college saving plans impact a family’s Expected Family Contribution (EFC) is helpful. There is a great deal of confusion on how assets are counted in the financial aid process. This is especially true with college saving plans since the student is the beneficiary of the investment yet may not be the owner. This confusion has caused some people not to use these investments. If you understand the rules of the college financial aid calculations and college saving plans these are a great method to paying college tuition.
The article title is “How College Saving Can Affect Financial Aid”.