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Funding

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What impact will my child’s savings have on federal student aid eligibility? If you have shifted significant resources into your children’s names to lessen your federal income tax burden, this could reduce your children’s financial aid eligibility. This includes prepaid tuition and the proceeds of 529 tuition savings plans. In the calculations for federal financial aid eligibility, the student’s savings are taxed at a much higher rate than those savings reports for parents. If you…