Will opening an Embark account affect a beneficiary’s eligibility for federal financial aid?

It can, but a lot depends on who owns the account. In most cases, your Embark balance will have a minimal effect on the amount of aid you receive and will end up helping you more than hurting you. If the parent or dependent student owns it, the assets in the account are considered parental assets, which are treated more favorably when determining financial aid eligibility. An UGMA/UTMA custodial account, on the other hand, is considered a student-owned asset and may make it more difficult to qualify for financial aid. Accounts owned by other friends and relatives can have different effects. Notably, thanks to recent changes to the FAFSA program, Embark accounts owned by grandparents no longer count against the beneficiary's ability to qualify for financial aid. To fully understand how your account will impact your loved one's eligibility, consult your financial advisor or use the Federal Student Aid Estimator tool.