The most commonly used source of financial aid for college students is the federal government, and to apply for these funds, a student or their family must submit a Free Application for Federal Student Aid (more commonly known as FAFSA).

Submitting a FAFSA requires providing a number of documents showing a family’s financial situation, after which the government will calculate that student’s expected family contribution (EFC) to determine their level of need. Having a 529 plan can sometimes factor into this calculation, but accounts owned by a parent have little effect on federal aid considerations.