Reply to College aid: Do retirement fund and equity in primary residence count?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]This is a little different but the financial guy at my bank told my that unless you fully fund a 529 you shouldn't do it.  It counts as an asset.  So if you save as little as $50,000 you could end up not qualifying for FA.  And as we all know $50,000 will barely make a dent.  I had never heard of this or thought of this.  I'm going to talk to my actual financial planner to confirm if this is true.  The guy at my bank said I should open a SEP IRA (I'm self-employed).  It does not count as an asset and you can pull from it, tax free, for educational purposes.[/quote]

Well of course the money you save for college should be counted as an asset to pay for college. Why on earth wouldn't it?[/quote]

No, this isn't right. Only about 5% of the money in a 529 counts in the FAFSA EFC calculation each year. Colleges do not require you to deplete your savings. They may require you to pay an amount equal to a significant share of your income.[/quote]

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