USA Today provides some advice when applying for financial aid for your college student. New laws can have a big impact.

The biggest change concerns the way state-sponsored 529 college savings plans are treated. The Deficit Reduction Act of 2005 [...] clarifies that 529 plans are considered the parents’ asset for purposes of calculating financial aid — even though their dependent child is usually named as the beneficiary. Likewise, the law states that prepaid college tuition plans and Coverdell education savings accounts are the parents’ assets.

The distinction is crucial, because student-owned assets can torpedo your child’s eligibility for financial aid. In calculating how much a family can afford to pay for college, the federal formula for the 2007-08 school year counts 20% of assets owned by the student. For parent-owned assets, the maximum assessment is much lower: 5.64%.

Under the new law, custodial 529 plans owned by a dependent child aren’t counted at all. Custodial 529 accounts are usually created when parents transfer a Uniform Gifts to Minors Act account to a 529 plan.

Check the deadlines for the schools your child is interested in attending. A handful of private schools impose January deadlines for FAFSAs, but most schools don’t require you to send in your financial information until February or later.

For more information on FAFSAs, go to fafsa.ed.gov