How do you shelter college savings?

[Mill]

Originally posted by: Riprorin
Is it fair to penalize parents and students who are thrifty?

If you want fairness, scrap the whole financial aid process and just lower the sticker price.

No one is being penalized. It is the way things work. If you have significant assets and income, you are not eligible for most need-based financial aid, because you don't NEED it. Academic aid sure, and some private schools will give you need based as well due to their exorbitant prices.

You are penalizing me by forcing ME to pay for YOUR child's schooling. Think about it from both sides Rip.

 

[Riprorin]

Here's the way I look at:

What if I have the same income as someone else and I scrimp and save for my kids education while they choose to join a country club and buy a BMW with the money.

Is it fair that their kids should get more financial aid then mine because I have more cash assests?

If I'm paying more for my kids college education than someone else at the same school, then I'm subsidizing them, correct?

What's fair about that?

 

[Mill]

Originally posted by: Riprorin
Here's the way I look at:

What if I have the same income as someone else and I scrimp and save for my kids education while they choose to join a country club and buy a BMW with the money.

Is it fair that their kids should get more financial aid then mine because I have more cash assests?

If I'm paying more for my kids college education than someone else at the same school, then I'm subsidizing them, correct?

What's fair about that?

Have you ever filled out a FASFA?

 

[Aboroth]

This page has a table of what savings affects financial aid: link

That might help.

 

[Riprorin]

No, my kids are only 7 and 9. Just planning ahead!

I went to college 20 years ago so things have probably changed since then.

My father made too much for me to get financial aid, but no enough for him to give any money so I was basically screwed. Fortunately, he worked for DuPont and I was able to work there summers and Christmas vacations. Back in 1982, I was earning $8.50 an hour. That's probably more than a lot of college students earn now.

Can I find this form on-line?

 

[Riprorin]

Originally posted by: Aboroth
This page has a table of what savings affects financial aid: link

That might help.

Thanks.

"The need analysis formulas include an asset protection allowance based on the age of the older parent which shelters a portion of the family's investments. For the typical parents of college age children (age 45), this asset protection allowance amounts to approximately $45,000. "

45K isn't much.

 

[Mill]

Originally posted by: Riprorin
No, my kids are only 7 and 9. Just planning ahead!

I went to college 20 years ago so things have probably changed since then.

My father made too much for me to get financial aid, but no enough for him to give any money so I was basically screwed. Fortunately, he worked for DuPont and I was able to work there summers and Christmas vacations. Back in 1982, I was earning $8.50 an hour. That's probably more than a lot of college students earn now.

Can I find this form on-line?

FASFA forms