It will be factored in when considering financial aid eligibility. Unfortunately, having a 529 Plan may affect your child’s eligibility for financial aid in the future.
If a parent owns the account, in 2016 the financial aid office will take 5.64% of the account’s value (and all other non-retirement investment accounts) into consideration when determining how much financial aid a student can receive.
So if the student would have gotten $5,000 in aid one semester, but the parents have a 529 plan with $50,000 in it, the benefit has now been shrunk by 5.64% of $50,000, and the student will receive about $2,180 in aid that semester.
If the 529 is instead owned by grandparents or another non-parent family member, eligibility is reduced by up to 50% of the aid received for the next year, after the income from the 529 has been reported.
Educational institutions may have their own restrictions as well. For this reason, some people seek to save for college in other vehicles that are not included in the FAFSA assessment, such as cash value of life insurance.
What is the Federal Supplemental Education Opportunity Grant?
What is a Student Loan?
Some hedge funds will require investors to fit the Qualified Purchaser criteria, which requires a portfolio of $5 million
EBITDA is used as a ballpark figure for where the company’s earnings are without these expenses. EBITDA has no standard
The Positive Volume Index track increases in trade volume for an index or security and the changes in price on those days
A high volume of loans issued to those who were unable to repay them contributed to the subprime meltdown of 2007-2009
A letter of credit is a provided by a bank on behalf of the buyer, to ensure the seller that payments will be made
Leveraged loans are typically targeted at companies that already have a significant amount of debt and may be limited
Bankruptcy court is a special judicial proceeding which determines how a debtor can settle accounts and move on
Foreign Exchange Risk is the potential loss to an investor when doing business if the exchange rate swings unfavorably
Chapter 11 is a type of bankruptcy filing a company can make to give itself time to reorganize and hopefully continue
Market Capitalization refers to the total ‘market-size’ of a company, calculated by the number of shares outstanding...