Why Account Titles are Important
The type of account used to save for college costs can impact a college savings plan in a variety of very important ways. Using the wrong account type can cause potential difficulties in the future. The key areas of concern when selecting a college savings account include how the account will impact Financial Aid eligibility, the tax consequences associated with the account, how the assets in the account can be used, and who maintains control of the assets. The following table outlines these items.

Type of Titling	Decreases Financial Aid by	Taxation	Use of Assets	Control
Parent's Name	6%	Usually Higher	No Restriction	Parent
Student's Name	25-35%	Usually Lower	No Restriction	Student
Joint Name	Depends on SSN	Depends on SSN	No Restriction	Both
UGMA/UTMA	25-35%	Kiddie Tax Rules Apply	Child Use Only	Parent Until Age 18
Trust	25-35%	May be Higher	Trust Restrictions	Trustee
Qualified Plans	N/A	Depends on Age and Plan Type	Depends on Age and Plan Ttype	Parent
Coverdell ESA	25-35%	Tax Free	Education Only	Student
Qualified State Plans	50% of Income Distributed	Tax Free	Higher Education Only	Donor