The happenings "inside" the Wisconsin State Treasury and across the street at the State Capitol

FAQ: How will an EdVest account affect financial aid?


To start with, Federal financial aid is based on approximately 6% of paren’t assets and 20% of student’s assets.

So 529 accounts owned by a dependent student, which includes UGMA/UTMA 529 accounts, are considered an asset of the parent for financial aid calculations starting with the 2009-2010 school year. This is the same treatment as parent-owned 529s. Currently, these accounts are excluded from financial aid consideration. 529 accounts owned by an independent student are considered an asset of the student for financial aid calculations. If the account owner is not a student, parent, or legal guardian, then the account assets should have no implications to financial aid.

It’s important to remember that a beneficiary who will use money from an EdVEst account may not have to borrow as much in student loans, which can be the biggest part of most financial aid packages.

When talking about WI state financial aid the good news is that EdVest investments are exempt from the calculation of Wisconsin state financial aid awards administered by the Higher Educational Aids Board (HEAB). If you’re applying for Wisconsin State financial aid, contact HEAB to have your EdVest assets removed from the calculation of your “expected family contribution.”

Contact HEAB by writing to: P.O. Box 7885, Madison, WI 53707-7885 (give them the question number from the FAFSA form, and the amount of EdVest assets included), or e-mail them at HEABmail@heab.state.wi.us.

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2 responses

  1. Pingback: FAQ: How Do I Open An Account with Edvest? « Wisconsin State Treasury

  2. Pingback: FAQ: What happens to my 529 plan if I die or become incapacitated? « Wisconsin State Treasury

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