Friday, January 16, 2015
Solutions for College Funding: Factors that Can Affect Financial Aid
Unlike parental assets, the child’s assets count for more in aid calculations, typically up to 20 percent. Therefore, one of the most practical solutions for college funding hitches whereby a college-bound child has several assets to his name is to transfer them to their parents. Transferable assets include noncustodial accounts (e.g. regular savings, certificates of deposit) and Series I and EE savings bonds. Conversely, custodial accounts and trust funds must remain in the child’s name.