For an undergraduate student filing the FAFSA, how are funds held in a 529 college savings plan typically assessed if the student is a dependent and the account is owned by a parent?

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B) As a parent asset, counted at a maximum of 5.64% of its value.. When a dependent student's parent owns a 529 plan, the funds are reported as a parent asset on the FAFSA. Parent assets are assessed at a significantly lower rate (maximum 5.64%) than student assets (20%) in the aid calculation.

For an undergraduate student filing the FAFSA, how are funds held in a 529 college savings plan typically assessed if the student is a dependent and the account is owned by a parent?

✓ Correct Answer: Option B

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