529 assets may have a relatively small effect on federal financial aid eligibility because they are considered assets of the parent in the Expected Family Contribution (EFC). Conversely, accounts that are considered assets of the child, such as an UGMA/UTMA account, tend to have a greater effect on federal financial aid eligibility in the EFC calculation. A 529 account owned by a grandparent or another person who is not the parent of the beneficiary could have more of an effect on financial aid.