FAQs

Yes, a 529 College Savings Plan account can affect a beneficiary’s financial aid, but it all depends on who the account holder is. If the parent or dependent student is the account owner, the assets in the account are considered parental assets, and are treated more favorably than assets of a non-dependent student when determining financial aid eligibility. A UGMA/UTMA custodial account is considered a student-owned asset and may reduce financial aid eligibility more significantly. Accounts owned by other parties can affect eligibility differently. To fully understand the potential impact on your beneficiary, it’s best to consult your financial advisor or the financial aid office at your school. 

If you receive a refund from an eligible educational institution, you can use our Contribution Form (PDF) to recontribute those funds back into your account without tax penalties or fees, as long as you do so within 60 days of receiving the refund.

If your beneficiary gets a full ride or partial scholarship, you can withdraw your contributions up to the amount of the scholarship without a penalty or additional tax, but you will have to pay income tax on the earnings.