Big changes are being implemented for student aid that will allow families to file their applications earlier and more easily. New changes might also make the underused 529 savings plan more useful.

Financial advisors should be aware that the Free Application for Federal Student Aid, or FAFSA, can now be filed as early as October 1 the year before students attend school—meaning that families filing for the 2017-2018 school year can file on Saturday, three months earlier than they were previously able to.

“This is when the window opens; it’s not a deadline per se, but the rule of thumb with financial aid is the sooner, the better,” says Matt Sommer, vice president and director of retirement at Denver-based Janus Capital. “We haven’t heard very much said about this change, but we know that there’s a struggle to decide how to plan for retirement versus how much to put away for college, and this is an issue that should be on [families’] minds.”

Even more significant to advisors, however, is that schools and federal agencies will now use household income from two years before the academic year to calculate a student’s aid award. That means families will use their 2015 tax return to file for 2017-2018 student aid.

Previously, families used their prior year tax return to calculate family income on a FAFSA—which often required them to estimate their income and submit the FAFSA before having their tax documents complete. Then they would have to amend the FAFSA later in the year to make sure it reflected their actual tax filings.

The scheduling change has implications for families who are filing a second FAFSA after submitting one for the 2016-2017 year, says Sommer.

“Because we’re in a transition period, a 2015 tax return now has to do double duty,” Sommer says. “If a family was well positioned in 2015 to maximize the student’s aid award, they’ll have an advantage.”

The earlier filing date also allows families more flexibility in their college financial planning, says Sommer, because under the previous time line students were often not informed of their financial aid rewards until late in the application process.

“It takes the guesswork out of the equation and streamlines the whole process of applying for aid,” Sommer says.

The FAFSA rules about 529 savings plans, which affect the family income estimate, have also changed, says Sommer.

Just as in previous years, 529s must be in the name of a student or their parents for the plan distributions to be exempted as “income” on the FAFSA, while distributions from 529s in the names of other relatives—like grandparents—must be reported as income.

However, because the FAFSA’s income estimate now looks back two years instead of using the prior year’s income, students can take those distributions during their penultimate and final years in college without impacting their aid eligibility.

“We’re suggesting that people use their 529s that are in the parents’ or the student’s names during the freshman and sophomore years, and then if there are any grandparent 529s, use them in the junior and senior years,” Sommer says. “It will no longer show up as income at that point. The rule change ends up increasing the flexibility of 529s.”

The tax rules for tuition “gifts” directly to higher education institutions from grandparents and other relatives have changed as well. Now individuals can gift unlimited amounts directly to a university without triggering a gift tax. This offers high-net-worth grandparents a useful way to deploy their wealth and reduce their potential estate tax burden.

Sommer says that the rule changes will have residual impacts on higher-net-worth families whose children won’t typically qualify directly for federal student aid.

“Many schools are adjusting their financial aid program to be harmonized with the new October 1 window,” Sommer says. “In a lot of cases, school aid from a particular college and university are limited funds, doled out on a first-come, first-serve basis. It’s important for families who may not qualify for federal aid but may qualify for school aid or have a student that qualifies for scholarships to comply with the new deadline. File ASAP because you don’t want to lose your place in line.”