How Does Raise Education Work with Federal and State-Run Student Aid Programs?
Raise Education is designed to complement existing federal and state-run student aid programs, including 529 plans, grants, and scholarships. By combining traditional education savings methods with crowdfunding, Raise Education provides additional flexibility for families looking to fund education expenses.
Key Considerations
- Raise Education funds are stored in a 529 plan, which is considered a qualified education savings vehicle under federal tax law.
- 529 plans do not typically impact federal student aid eligibility as heavily as personal savings or custodial accounts.
- FAFSA (Free Application for Federal Student Aid) calculations consider **529 accounts owned by a parent as parental assets**, meaning they have a smaller impact on aid eligibility than student-owned accounts.
- Raise Education funds can be used in conjunction with Pell Grants, state grants, and merit-based scholarships to help cover remaining education expenses.
- Some state-run aid programs may have specific requirements regarding 529 plan contributions and withdrawals, so it’s important to check local regulations.
Why It Matters
Understanding how Raise Education fits within the broader financial aid landscape helps families maximize their savings potential while ensuring eligibility for federal and state aid programs.
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