Q: Our son received $100K in trust from his grandfather. He doesn’t have access to these funds until he turns 25. Will this affect his financial aid?
A: Yes. Student assets are ‘assessed’ at the rate of 20%. For your son’s $100K trust fund, your EFC (Expected Family Contribution) will be increased by $20,000. This results in a reduction of $20K in his financial aid eligibility. Unfortunately, the fact that your son cannot access these funds until he’s out of college doesn’t influence the assessment.
Q: I remarried last year. I read that my husband’s income and assets will hurt my daughter’s chance of getting financial aid. Is that correct?
A: Yes, that is correct. Custodial parents are often surprised to learn that the custodial step-parent’s income and assets are declared on the dependent student’s financial aid forms. This often reduces financial aid eligibility significantly.
Q: My daughter has been working since she was 16 and wants to keep her job until she leaves for college. Does her income enter into financial aid?
A: The character of a working student is noble, but be aware of this impact to financial aid. Parents need to know this so they can make an informed decision regarding the student working.
For a report on the 10 Mistakes, and a link to the most effective EFC Calculator we have found, go to our website…www.GetCollegeFunding.org. Also sign up for one of our free local or WEBinars. If you would like us to speak in your local high school, shoot us an e-mail, at firstname.lastname@example.org.
For free seminars, WEBinars, and useful tools to help guide the college planning process, please go to www.GetCollegeFunding.org, and sign up for our "10 Mistakes Most Parents Make When Planning For College".