Good News for Prepaid Tuition Plans!

College Illinois! and other 529 prepaid tuition plans recently received some good news. Beginning in this year, prepaid tuition plans will be treated the same as savings plans and will have only minimal impact for participants when it comes to financial aid. There is a new federal policy that will become effective July 2006 stipulating that prepaid tuition plans will now be reported as parental assets on the Free Application for Federal Student Aid (FAFSA). Until now, prepaid plans were treated as a student resource having a much greater impact on the student's eligibility for financial aid. Click here for more information on this exciting new development.