College Aid: Before spending the parent’s assets, spend the student’s assets first
When considering a student for financial aid, the federal formula expects the student to contribute 50% of the student’s income (minus the income protection allowance), and 35% of the student’s assets during his/her base year. Given this, the family should spend down the student’s money first. For example, instead of buying the student a car or a computer while he/she is in college, have the student buy it out of their own funds during the base year before you apply for FAFSA. This may increase the student's eligibility for aid and reduce the family's out-of-pocket costs.
By Mario Chiara from Danbury USA.
When considering a student for financial aid, the federal formula expects the student to contribute 50% of the student’s income (minus the income protection allowance), and 35% of the student’s assets during his/her base year. Given this, the family should spend down the student’s money first. For example, instead of buying the student a car or a computer while he/she is in college, have the student buy it out of their own funds during the base year before you apply for FAFSA. This may increase the student's eligibility for aid and reduce the family's out-of-pocket costs.
By Mario Chiara from Danbury USA.
2 comments:
Hi nitya kalyani your blog has got very interesting posts. I am so hooked on to it I have become a follower too. Thanks for visiting my blog
anandhirajan
Thanks Anandhi - do drop in whenever you are free. Sure will add some more things - many are in the pipe line. Thanks dear to become my follower. Your visit will always encourage me to do more
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