| Author |
Message
|
| trixiezzz |
 Posted: Fri Feb 11, 2005 12:57 pm Post subject: Will the money I give my kid affect college financial aid? |
 |
|
Investing Manager
|
| Should I invest college money in his name or keep it in my name? |
|
| Back to top |
|
 |
| ricekobe |
| Posted: Mon Feb 14, 2005 2:00 am Post subject: |
|
|
Investing Associate
|
| If you do it in his name, and he has no income, there is a better chance he will receive aid. If you have a steady income and it is under your name, chances are you will not get financial aid. |
|
| Back to top |
|
|
| WeareMom |
| Posted: Sun Feb 20, 2005 8:00 am Post subject: |
|
|
Investing Associate
|
| What we have been traditionally told in regard to this topic is that colleges expect that students will put 100% of their money toward their education, but parents are only expected to put a much smaller percentage... hard to explain, but in terms of financial aid if you kid has $100 in his name, that is counted towards $100 of college money, but if you as parents have $100 in your name, it is only expected that you would put $10 towards college. Not sure exactly what the percentage breakdown is, but overall you are better keeping the money in your name (unless you take a big tax hit on interest). |
|
| Back to top |
|
|
| trixiezzz |
| Posted: Sun Feb 20, 2005 10:32 am Post subject: |
|
|
Investing Manager
|
| thanks for that advice. I had never heard that before. Probably, any money I give my children will be spent buying themselves a car ~ and will be long gone by college time anyway! |
|
| Back to top |
|
|
| JoiseyFamily |
| Posted: Sun Feb 20, 2005 1:58 pm Post subject: |
|
|
Investing Associate
|
| The money should be in your name. They don't take 100% of the kids money, but they do expect the majority of it. There are tons of websites that can explain it. But if you are rich or middle class, they will expect you to pay for your kids college, even if the parents have to take out loands. The schools don't care. My son is going to a private school, and has an ROTC scholarship, and still has loans. Certain schools look at your house, and investments as money for school, and other schools just look at income. |
|
| Back to top |
|
|
| ladyelle |
| Posted: Sun Feb 20, 2005 6:54 pm Post subject: |
|
|
Investing Associate
|
| I am saving for college for my children in my name. Hopefully, it will increase their chances for financial aid and they will have to pay less money. |
|
| Back to top |
|
|
| poohlover |
| Posted: Mon Feb 21, 2005 3:26 am Post subject: |
|
|
Investing Associate
|
| Yes, we also found that they do look at the amount that your child has in his/her name. But I am amazed at how much they expect you & the child to pay! I am hoping when we have 2 or perhaps 3 kids in college at once we will get some money. |
|
| Back to top |
|
|
| lmountford |
| Posted: Mon Feb 21, 2005 10:17 am Post subject: |
|
|
Investing Sr. Associate
|
Hi,
I'm from the UK where traditionaly we have had free college education. When I gained my degree 20 years ago I received both tuition fees and living expenses from the state. Sadly things have changed a lot recently, by the time my child is old enough to go it's going to cost a fortune. Something I understand people in the US have faced for years  |
|
| Back to top |
|
|
| trixiezzz |
| Posted: Mon Feb 21, 2005 4:38 pm Post subject: |
|
|
Investing Manager
|
| How do the prepaid state college funds affect their loan chances: since they really only cover part of the total cost? |
|
| Back to top |
|
|
| mrsboz |
| Posted: Tue Feb 22, 2005 9:18 am Post subject: |
|
|
Investing Sr. Associate
|
| I was told it is better to have no money in their name at all because the college basically expects that money and someone who doesn't have any money at all gets a better break? Not sure but I think that any money my children have will someday go for their first car. |
|
| Back to top |
|
|
|
|
 |
| jeepgirl30 |
| Posted: Wed Feb 23, 2005 6:35 am Post subject: |
|
|
Investing Sr. Associate
|
My kids are young, it is so scary to think how much college will cost by the time they are ready to go.
I had to pay my own way and my DH is still paying off his loans. I do not want to do that to my children or their future spouses! |
|
| Back to top |
|
|
| SCmomof3 |
| Posted: Wed Feb 23, 2005 11:47 am Post subject: |
|
|
Investing Associate
|
| I am not certain but I also think it's best to have it in your name. They're going to count the money as separate anyway, looking at first the student's assets and then the parents. I believe it's better for the student to have no assets and then whatever money you have saved for the student in your name is already part of your assets. I hope that makes sense. I may be completely wrong though LOL |
|
| Back to top |
|
|
| ladyelle |
| Posted: Sat Feb 26, 2005 6:39 pm Post subject: |
|
|
Investing Associate
|
It is best to not have any assets in the child's name when the college's are reviewing the need for financial aid. The child needs to have no assets in his name beginning his junior year of high school.
In addition, the parents need to look broke as well. Most college financial aid calcuations do not include parents retirement accounts or primary residence. Money in savings accounts, money markets, stocks, etc. are taken into account as what the parents can contribute. The key is to look as poor on paper beginning the child's junior year of high school.
There is an excellent book called How to Save for College without going Broke. |
|
| Back to top |
|
|
| ladyelle |
| Posted: Sat Feb 26, 2005 6:40 pm Post subject: |
|
|
Investing Associate
|
It is best to not have any assets in the child's name when the college's are reviewing the need for financial aid. The child needs to have no assets in his name beginning his junior year of high school.
In addition, the parents need to look broke as well. Most college financial aid calcuations do not include parents retirement accounts or primary residence. Money in savings accounts, money markets, stocks, etc. are taken into account as what the parents can contribute. The key is to look as poor on paper beginning the child's junior year of high school.
There is an excellent book called How to Save for College without going Broke. |
|
| Back to top |
|
|
| chahsiubow |
| Posted: Thu Jun 23, 2005 7:41 am Post subject: |
|
|
Investing Sr. Associate
|
| I had savings bonds in my name that I didn't report on my FAFSA. I'm not sure if it were proper to do that, but it didn't get noticed for 5 years. Technically, it was my mom's money that bought it though... |
|
| Back to top |
|
|
|
|
stock market game on the web. At eInvesting you compete for monthly cash prizes while you interact, make virtual dollars, purchase items, and trade in the realistic stock market simulator. We make investing FUN!
