Parents wonder if $ in two 529 plans will hurt chance for grant, loan

DEAR HARRY: We have always considered education beyond high school an important part of raising children. Wasn't it you who said that "the most important thing a parent can do for a child is to provide for that education"? We have set aside some pretty solid amounts in two 529 accounts. We heard some college-guidance guru say that too much in the 529 plans will hurt the child's chances of getting grants or loans. The guy sounded too slick, so we want you to keep us straight. Can do?

WHAT HARRY SAYS: Most ofcoursely. Slick or not, the guy had it right. However, it really is no big deal. The real aid killer is high income rather than college savings. Let's take a closer look at what the score is. From 22 to 47 percent of the parents' income may be considered in determining how much the Expected Family Contribution will be. However, the percentage of family assets (including the 529 plans) is only considered to contribute 5.6 percent. That has only a negligible effect on the aid package. Incidentally, I may have said that "one of the most important . . . " I did say that the "most important thing a man can do for his kids is to love their mother."