With the steep cost of college, lots of grandparents feel the need to help cover some of the expenses.
One way to assist is by contributing to a tax-advantaged 529 college-savings plan. Earnings in the account are tax-free if used for qualified expenses.
But for grandparents, there can be a catch to your generosity. The Free Application for Federal Student Aid (FAFSA) looks at income and assets to determine how much parents and a student can contribute to their education expenses.