Federal financial aid may be available to a student even if a parent or student owns a 529 account. Part of the financial aid process is to determine a student's financial need. Parents will need to include their 529 assets when filing the Free Application for Federal Student Aid (FAFSA). Also, assets in a 529 account owned by a student, or a custodian of the student, count as assets of the parents. Assets held in a 529 account by someone other than the parents or student, such as grandparents, are not considered in the calculation for financial aid.
NOTE: This information is only a summary and not intended as advice. For more information about financial aid consult a financial aid adviser, or consult the U.S. Department of Education's website at www.ed.gov.
No matter which state you live in, you can invest in a Learning Quest account. Check with a tax adviser about your state's rules.
Learning Quest provides a payroll deduction option for businesses. Learn more about how Learning Quest can enhance your company's benefits package.
Besides the tax advantages that a 529 plan offers, Kansas taxpayers also receive an annual adjusted gross income deduction of up to $3,000 ($6,000 if married, filing jointly) for contributions per beneficiary per year.
The K.I.D.S. Matching Grant Program was established to help qualifying households with their higher education investing needs. The Program provides matching funds of up to $600 for contributions to a Learning Quest account. Learn more.
This article is published on KansasMoney.gov. Find more information by contacting these state agencies: