dc328c1b_ership__In_Whose_Name_to_Save___Financial_Aid_Treatment
[Savings Vehicle] Section 529 College Savings Plan [Comments] Qualified distributions do not affect eligibility (i.e., qualified distributions do not count as income or a resource). Note that non-qualified distributions (i.e., distributions that are subject to federal income tax) do count as income to the distributee. Custodial 529 college savings plans owned by a student, where the student is both the account owner and beneficiary, are reported as a parent asset if the child is a dependent student and a student asset if the student is an independent student. This treatment is effective with the 2009-10 award year due to a legislative change enacted in the College Cost Reduction and Access Act of 2007. 529 college savings plans owned by a third party, such as a grandparent, are not included as assets on the FAFSA, but distributions from such a plan are reported as untaxed income to the beneficiary on the FAFSA. [Financial Aid Treatment] 
asset of account owner (low impact if owned by student or parents; high impact if owned by a third party)
FinAid | Saving for College | Account Ownership: In Whose Name to Save?
Financial Aid Treatment