Do funds in the custodial account affect eligibility for financial aid of the beneficiary?
Question 42 of the Free Application for Financial Student Aid (FAFSA) form asks about the student’s net worth.
Custodial accounts (UGMA/UTMA) like those offered on Stash, are considered to be assets owned by the student if the student is the owner of the account and their parent is the custodian.
If the parent is the owner and the student is the custodian, then the assets count toward the parent’s net worth.
Dependent students must provide information about their legal parents when applying for financial aid. This includes the parent’s net worth. This means that dependent students will have to report any funds held within a custodial account.
If the student owns the account, it counts toward their own net worth. If their legal parents own the account, it counts toward the net worth of the parents.
In short, a custodial account will always impact an application for college financial aid.
For more information on filing a FAFSA, including how UGMA and UTMA accounts affect the process of applying for college financial aid, the official blog of the U.S. Department of Education has a detailed post on this subject.
Related questions View all Custodial
Q. The 2021 Tax Season Dates You Need to Know
There are six important tax dates you should know for 2021. Tax Day is April 15, 2021. You can make 2020 IRA contributions until April 14, 2021, at 3 p.m. EST. Tax season is just around the corner. To help you get organized,…3
Q. Will I have stash tax documents if I lost money on Stash?
Essentially, if you sold an investment, you should have a tax form, even if you sold an investment at a loss. By February 16, 2021, you can check in the Stash app to see if your Form 1099-DIV and/or Form 1099-B are there.…0
Q. You should have tax documents from Stash if…
You received dividend payments greater than $10 from your Stash Invest investments in 2020.1 You received more than $10 in interest on your Stash Invest account. You made a withdrawal from your Stash Retire IRA of $10 or more,…2
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.Ask your question
Intro to Stash: Everything You Need To Know To Start Investing
The Stash Way is a few simple principles at the core of investing with Stash.
Fiduciary 101: Why it’s Our Job to be Your Advocate
It’s a big word that means a lot when it comes to handling your money. It defines a relationship built on trust and duty.
Debt and Equity: What Every Smart Investor Needs to Know
You can invest in debt & in equity, but do you really know what that means? We break down the jargon.