<p>does anyone know what pct or amount of the student's assets is excluded (or used) for college tuition?</p>
<p>same question for the parents assets.</p>
<p>For FAFSA
Students have no asset protection. 20% of student assets go to the EFC.</p>
<p>Parents asset protection depends on the number of parents and the age of the older parent. From the EFC formula for 2008-2009 (will change for 2009-2010)
<a href="http://ifap.ed.gov/eannouncements/at...rmulaGuide.pdf%5B/url%5D">http://ifap.ed.gov/eannouncements/at...rmulaGuide.pdf</a></p>
<p>Asset protection table is table A5 on page 19</p>
<p>Unprotected Parent Assets (Home equity and retirement accounts are not reported on FAFSA) over the protected allowance are assessed to the EFC at @ 5.6%.</p>
<p>Here's a link to the 2009-2010 tables:</p>
<p>The biggest variable for many families is the treatment of home equity. While FAFSA doesn't include it, a school's supplemental form may ask for this information. Also, CSS Profile does request home equity info. Some schools don't count home equity as an asset while others may only treat a portion of home equity as an asset.</p>
<p>thanks. So if I read the 09-10 tbls right, if I will be 50 in 09-10, (i'll be 50 in nov of this yr), and we have 1 dependent college student, then up to $55,300 of our assets will be excluded from the financial needs formula, correct? </p>
<p>In other words, if the sum total of all of our reportable assets were, say, 52,000, then to the formula, this iwould be the same as someone with 1,000 of assets, correct (assuming same income)? </p>
<p>Is the 5.6 pct assessed on the amount that is OVER the protected amount - in our case 55,300? In other words, in our 52,000 example would there be NO assets that wd be assesed?</p>
<p>And for the student's assets, if they had $10, they would have to kick in $2, and if they had 20,000, they wd have to kick in 4,000 - correct? No protection?</p>
<p>UNPROTECTED ASSETS
you mentioned that home equity and retirement accts are not reported on fafsa, but can be reported on institutional FA apps. so they are protected from the fed point of view, but not from the institution's pt of view?, </p>
<p>and, the assets that are reportable (home, retirement), if an institution does not do CSS Profile, would vary by institution, correct?</p>
<p>thanks again for your insights.</p>
<p>
[quote]
thanks. So if I read the 09-10 tbls right, if I will be 50 in 09-10, (i'll be 50 in nov of this yr), and we have 1 dependent college student, then up to $55,300 of our assets will be excluded from the financial needs formula, correct?
[/quote]
Yes except I think it is the age you will be at the end of 2009 that FAFSA uses so you will be 51. </p>
<p>
[quote]
In other words, if the sum total of all of our assets were, say, 52,000, then to the formula, this iwould be the same as someone with 1,000 of assets, correct (assuming same income)?
[/quote]
If your assets are 52,000 and the protected allowance or your age is $55,300 then your assets in the formula would be 0 not 1000. Income is not relevant to asset treatment unless you qualify for the simplified needs test (income <$50k)</p>
<p>
[quote]
Is the 5.6 pct assessment on the amount that is over the protected amount - in our case 55,300?
[/quote]
Yes</p>
<p>Swimcats...I believe I'm correct in stating that the asset protection for STUDENT assets is zero.</p>
<p>You are correct thumper. I said that in post #2 :)</p>
<p>thanks again, all. a couple more questions:</p>
<p>1) can tuition be paid for 2008-09 before the terms have occurred? d is in a trimester system.</p>
<p>2) for s.yr 2009-10, fafsa can be filled out at around the beginning of january, from my recollection. assuming tuition can be pd before the term starts, I assume this reduced balance can properly be reflected in fafsa. </p>
<p>I'd ask the same question for next yr (pd in advance), but we do not have enuf funds to that anyway.</p>
<p>I assume you want to pay ahead so that the money you have saved for this year will not be counted as an asset in calculating what you would have available for next year. Your second trimester will probably already be billed by then, so you will probably just have one term's worth of tuition/fees to pay ahead. While the school might enjoy a few extra dollars in cash these days, some won't let that much stay on account. They'd cut a refund check automatically. </p>
<p>Do the calculations & see if the amount you plan to pay ahead really makes a difference in your EFC. Off the top of my head, I'd be surprised if it does. But if you want to pay ahead, you can always try it.</p>
<p>The amount of savings reported on your FAFSA is the money IN your account on the day you file (if the check is still in the mail, the money is still in your account).</p>
<p>btw, it would come out of daughter's account, which has zero asset protection.</p>
<p>Is it a 529? That is treated differently. If it's in an UGMA account or something else "not cash," you would probably be better off prepaying if possible.</p>
<p>Kelsmom- I have been told it is the amount of the balance in your check register, if some one has not cashed it, not your problem....not that it would make much of a difference to my case, but I have advised people of the same.</p>
<p>I was told to print a copy of the bank stmt and make a copy of the check register and save that to show where I got the numbers.</p>
<p>d's acct is a plain savings acct, not a 529.</p>
<p>Somemom, there does seem to be disagreement about exactly what figure to use. I have been told it's what is actually in the account on that day. However, I have heard some say that you can use what is there minus the checks written ... and I have even heard a financial aid counselor say it's what's typically in the account (I wouldn't bank on this one - it's a bit tough to provide backup documents for "usually"). I tried searching on the financial aid professionals' website & didn't see a definition of "cash in bank" other than the amount there on the day you filed FAFSA. To me, that means the amount actually in the bank on that day ... but if some colleges allow the account balance less checks written on/before that date that haven't cashed yet, I can see how that might work.</p>