All of the following statements concerning educational funding are correct EXCEPT: Distributions from a grandparent-owned 529 Savings Plan used to pay for qualified expenses are not reported on the FAFSA. The EFC (Expected Family Contribution) is a formula that indicates how much of a student's family's resources ought to be available to assist in paying for the student's college A student must submit a FAFSA (Free Application for Federal Student Aid) form to become eligible for federal financial aid. It is beneficial to spend down UGMA/UTMA accounts prior to filling out the first FAFSA