How to start the conversation

First, get the facts. It’s easier to have a conversation when you have a solid understanding of how financial aid works and what’s changed in the past few years.
 

	Understanding the financial aid system  Use this flier to explain how income affects financial aid, which uses three different income scenarios.  Client flier
	FAFSA update: Why grandparents now have greater incentive to own 529 accounts  Learn about the changes to the FAFSA process and how it means grandparents can help pay for college without worrying about the “financial-aid trap.”  Blog article

Put college savings in reach for your clients

Our Future Scholar 529 Plan offers benefits, including:

• Income, gift and estate tax advantages
• Diverse investment lineup using well-known managers
• Choice of investment options, including age-based, asset allocation and customized portfolios

Footnotes

Source: U.S. Department of Education and Federal Student Aid, the EFC formula for 2020–2021

¹ Available income is the amount of parental adjusted gross income after allowances for federal, state, local and FICA taxes, as well as an income protection allowance based on the number of people in the household. These percentages represent the minimum and maximum rate increase as the adjusted available income increases.
² $6,840 is the income protection allowance for the 2020–2021 academic year. 
³ Assets held in qualified retirement plans, such as IRAs, are not considered in determining eligibility for federal student aid. The percentage of other assets considered in determining EFC is assessed at a rate of up to 5.64% and will vary based on the amount of assets, the age of the eldest parent and whether there are one or two parents. 
⁴ A UGMA/UTMA 529 account of a dependent student is reported as a parental asset on the FAFSA.