Question

Why is saving for education sometimes harmful when filling out a FAFSA for student aid?
Select the best answer from the choices provided.

Answer 1

The FAFSA rewards families that started saving early in a child's life, so it helps richer people instead of poor people.
The FAFSA gives advantages to families with large credit card debts, so it rewards people who are poor savers.
The FAFSA counts savings against eligibility for federal student aid, so it penalizes parents who save well.
Federal student aid is only available to families who do not have 529 plan accounts, so the FAFSA is not an option for parents who save.