Why Student Assets Are Taxed Higher Than Parent Assets

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One of the most common questions I hear from families during financial aid planning is about the query FAFSA student assets assessed at higher rate than parent assets. It sounds technical, but understanding this single distinction can meaningfully change how much aid your family receives. If you have money sitting in a student’s savings account, a custodial fund, or a 529 plan owned by the student, the federal aid formula treats that money very differently than it treats the same. Fill the Student Assets FAFSA Gap – New Guide

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