September 12, 2016
NOW THEREFORE BE IT RESOLVED, that the National Association of State Treasurers and its affiliate, the College Savings Plans Network, urge the President and the Congress of the United States to revise the Higher Education Act to include language in the reauthorization of the Higher Education Act of 1965 to change the current federal financial aid methodology to:
1. Exempt up to $35,000 of the assets in all 529 accounts held by the parent(s) from counting as parental assets in determining a family’s expected contribution; and
2. Allow for the reporting of 529 plan assets held by grandparents or noncustodial parents as parental assets on the FAFSA and then not count those assets as income to the student in the following year when used towards eligible expenses.
NAST & CSPN Thanks Congress for Excluding 529 Plans from Federal Financial Aid in the PROSPER Act