It’s that time of year again: fall tuition bills are coming due, and students are preparing to head back to campus. That also makes it a great time to revisit one of the most significant recent changes to college savings.

For years, grandparents who owned a 529 college savings plan had to be careful about when they used those funds. While the accounts offered valuable tax advantages, withdrawals could unintentionally reduce a student’s eligibility for federal need-based financial aid—a challenge often referred to as the “grandparent trap.”

Fortunately, that’s no longer the case. Changes to the FAFSA have removed this concern, allowing grandparents to help pay for a grandchild’s education without those same financial aid consequences. This change not only simplifies college funding strategies, but also creates new opportunities for families to maximize tax benefits while preserving financial aid eligibility.

Understanding what changed and how to make the most of these new rules can help families make more informed decisions about paying for college.

Columbia Threadneedle Investments recently released a helpful article explaining what changed, why it matters, and how grandparents may be able to take even greater advantage of 529 plans as part of their family’s education and wealth planning strategy.

Click here to read the article: New Advantages for Grandparent-Owned 529 Plans

If you have questions about the best way to save for your grandchild’s education or how a 529 plan fits into your family’s overall financial plan, we’re happy to help.