FAFSA Information
For need-based financial aid, VEST accounts are reported on the Free Application for Federal Student Aid (FAFSA) if the account is owned by the student's parent whose assets are reported on the FAFSA (the FAFSA is the application most colleges and universities use for determining federal need-based financial aid eligibility). Instructions for completing the FAFSA indicate that students who must report parental information should report all qualified educational benefits or education savings accounts owned by the student or their parents, including "529 college savings plans" (VEST, CollegeAmerica, or CollegeWealth) and the "refund value of 529 state prepaid tuition plans" (VPEP). Approximately 5.6% of the value of Section 529 college savings plans and prepaid tuition plans will be included in the calculation of federal financial aid eligibility. VEST accounts owned by someone whose assets are not reported on the FAFSA (such as grandparents, aunts, or uncles) are NOT reported on the FAFSA. Tax-free distributions from Section 529 accounts are not considered income in the following year’s financial aid determination.
The receipt of account benefits should not affect the beneficiary's receipt of merit-based financial aid (academic or athletic scholarships, for example). VEST benefits do not affect a student's eligibility for a Virginia Tuition Assistance Grant for Virginia residents who attend an eligible, independent, nonprofit institution of higher education in Virginia.
VEST Account Values Reported on FAFSA
If the VEST account must be reported on the FAFSA, the value to be reported is the current account balance or market value as of the date of reporting. If parental assets are being reported on the FAFSA and there are other VPEP, VEST, CollegeAmerica, or CollegeWealth accounts owned by the parents, those account values must also be reported, even if the beneficiary is different from the student on whose behalf the FAFSA is being completed. For VPEP contracts, the contract value is defined as the refund value of any benefits. This is the amount that would be received if the account were closed and the owner received a refund. For VPEP, this amount is the total of payments made minus any benefits already used plus interest at the reasonable rate of return, compounded annually, on the amount of payments made (for accounts owned more than three years).
The most current account values for your VEST and/or VPEP accounts are available online. Begin by clicking My Account (located at the top of every page) and follow the instructions. Refer to the VEST Benefits Guide [PDF document, 600k, opens in new window] for complete step-by-step instructions. Call us toll free at 1-888-567-0540 if you need additional help from one of our customer service representatives.