00:00It's Benzinga bringing Wall Street to Main Street.
00:02Trump accounts could reduce some students' eligibility for need-based college financial aid,
00:07according to CNBC. The Department of Education has not issued guidance on how the accounts
00:13should be reported on the FAFSA. The tax-deferred accounts provide eligible children born between
00:18January 1st, 2025 and December 31st, 2028, with a one-time $1,000 treasury contribution
00:25and allow up to $5,000 in annual contributions. Higher education expert Mark Kontrowitz said the
00:33accounts could be treated as student assets on the FAFSA, which are assessed more heavily than
00:37parent assets. He estimated that a $10,000 balance could reduce grants by up to $2,000.
00:44Other experts said the accounts might eventually receive retirement account treatment and advised
00:49eligible families to claim the government contribution. For all things money, visit Benzinga.com.
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