- Will a College Kids account disqualify my child for college financial aid?
- Will these savings affect our family's eligibility for public assistance?
- Are there any tax implications with this account, and do I have to report it on my taxes?
No. Like other savings account vehicles, your child’s account will be included in the Estimated Family Contribution (EFC) on the Federal Application for Financial Aid (FAFSA) when your child is ready to apply for college. The account will not disqualify your student for financial aid, but will be considered an asset of the student. Please contact a financial adviser or the College Kids office for more information and resources.
Public assistance includes food stamps, TANF, child care, WIC etc.
No, your College Kids account will not affect your eligibility because you do not personally hold your savings. All funds are held by the City of St. Louis Treasurer’s Office. However, when your student turns 21 she/he will be fully responsible for the account and at that time the account would be considered as an asset of your child.
Since all of the funds in the account are held by the Treasurer’s Office, you do not need to report this on your tax return.