Should You Use a 529 Plan for College? Pros, Cons, and What Families Overlook
Most parents have heard of 529 plans. They offer tax-free growth and withdrawals for education—but they’re not always the best fit. Used incorrectly, they can reduce your aid eligibility or limit your options later. At Diversified College Planning, we help families understand how 529s fit into a broader financial aid strategy—not just a savings strategy.
Here’s what most families don’t know:
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529s count as a parent asset on the FAFSA, and while that’s better than student-owned assets, it can still reduce aid eligibility.
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You may not need to use 529 funds first. In fact, waiting to use those funds in later years can be a better move depending on your aid strategy.
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Some private colleges assess 529s more heavily—especially those using the CSS Profile.
We’ve worked with families who had $100K+ saved in 529s and still paid more than they should have because of how the funds were used and reported.
Our team also helps clients compare 529 plans to alternative funding vehicles that can preserve aid eligibility while offering more flexibility—including tax-efficient insurance strategies and properly structured cash flow tools.
Diversified College Planning shows families how to integrate 529s wisely into their college funding plan—without sabotaging their financial aid eligibility.
Contact Us Today: Not sure if your 529 plan is helping or hurting your strategy?
📞 Call us at 770-662-8510
📅 Schedule a free consultation: Book with Jarad
Or visit our Contact Page: https://diversifiedcollegeplanning.com/contact-us/
