There are many benefits to 529 college savings plans. They provide tax and financial aid advantages to families who save for college. However, the 529 plan does impact your financial aid and you likely need to report it on your FAFSA.

Saving for college reduces student loan debt at graduation and increases college choice. But it can also affect eligibility for need-based financial aid.

Depending on who owns the 529 plan account, a 529 college savings plan may affect either the income or the assets reported on the Free Application for Federal Student Aid (FAFSA). In this guide, we'll explore how a 529 plan can affect your FAFSA and financial aid eligibility.