While any assets you or your student own will affect financial aid, 529 savings plans have some benefits over other savings accounts. 529s are generally viewed as a parental asset if the parent is the account owner. So the funds in a 529 account are weighed less heavily than other accounts owned by the student in the federal formula used by colleges to determine financial need. If a grandparent owns the account and makes withdrawals for a studentâ€s expenses, the student may have to report assets used as income the following year. Note, however, that financial aid provided by a college or university may differ from federally determined financial aid.