Setting up 529 accounts in the kids’ own names is bad. If at all possible, use accounts in the grandparents’ names or some kind of cash value life insurance sold by someone who understands and is open about the disadvantages of life insurance.

Schools now capture 529s that grandparents own

Anonymous wrote:When each of our kids were born we set up 529 plans before they left the hospital. We saved little and first and then we’re able to increase when they finished preschool. At the same time we saved (maximum contribution) for retirement. It can be done!

This poster probably knows about this and planned accordingly, but, for others: Setting up 529 accounts in the kids’ own names is bad. If at all possible, use accounts in the grandparents’ names or some kind of cash value life insurance sold by someone who understands and is open about the disadvantages of life insurance.

But the point is to save money in accounts that won’t show up in the financial aid asset totals.

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Anonymous wrote:DS has been offered merit aid without filing FAFSA.

Depends on the school. Some won’t offer merit if you don’t do FAFSA.

Can you name one?

Virginia Tech.

"To receive financial aid through Virginia Tech, each student must complete the Free Application for Federal Student Aid (FAFSA) each year. The FAFSA is used to determine eligibility for many scholarships (including general scholarships from our office), grants, work study, and federal loans."

https://finaid.vt.edu/undergraduate/how-to-apply/fafsa.html#:~:text=To%20receive%20financial%20aid%20through,work%20study%2C%20and%20federal%20loans.

NP. Does this mean that if you earn too much then you can’t even get something like a merit scholarship? If so, does anyone know what the HHI cutoff is?

That is not what it means. It simply means VT is not giving out any money unless other funding sources, like federal, have been exhausted, so people who apply for scholarships need to prove they are ineligible for those by submitting the FAFSA.