MET & Your Financial Aid
Due to changes made by the 2006 Higher Education Reconciliation Act, proceeds from 529 prepaid tuition plans are no longer a dollar-for-dollar offset against tuition; 529 prepaid tuition plans and 529 savings plans are both treated as an asset of the owner (as long as the owner is NOT a dependent student).
For dependent students, a qualified education benefit shall not be considered as an asset of the student; rather, a qualified education benefit would only be reported as an asset of the parent if the parent (including a step-parent) is the owner of the account or plan.
To determine the value of these plans as an asset when completing the 2006-2007 Free Application for Federal Student Aid (FAFSA), the value of a qualified education benefit shall be:
- For prepaid tuition programs, the refund value of any tuition credits or certificates purchased under the qualified education benefit; and
- For savings plans or savings accounts, the current balance of the account
If your parent or step-parent is the account holder of your MET contract, the value of the contract should be included as an asset on the FAFSA.