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Grandparent Custodian of UTMA, FAFSA impact?

By Terry Savage on December 22, 2015 | College Savings / Student Loans

I am a grandparent I have a custodial stock account for a grandchild. When filling out a FAFSA application does the money in the account have to be listed as an asset to the child. He will be receiving grant money. Thank you

Terry Says:  According to Mark Kantrowitz of www.Edvisors.com, one of the leading experts on financial aid for college, this is an interesting wrinkle — having a grandparent as custodian of an UGMA account.  Here’s what his site says:

Only assets in the student’s name, the parent’s name (if the student is a dependent student) or the name of the student’s spouse (if the student is married) are reported on the FAFSA. Assets held by others, such as a grandparent, aunt, uncle, cousin or sibling, are not reported on the FAFSA but may be reported on the PROFILE.  Here’s a link to that page on the Edvisors site.   If you’re wondering about that word “PROFILE”, it is the CSS Financial Aid Profile, which may be required by some schools.

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