<p>If you feel your child is unlikely to receive financial aid due to your savings, would it make sense to use the savings to pay off your remaining 4 years morgage balance?</p>
<p>Have you run an estimate to see what impact liquidating your savings would actually have?</p>
<p>Well…it depends. If your child is applying to a college that uses the Profile, your home equity will likely factor into the financial aid process. </p>
<p>I guess I don’t understand why you wouldn’t feel fortunate that you have savings that can pay for your child’s college education.</p>
<p>Even if it’s a FAFSA only school, I would have to live in a pretty unusual real estate market to want to sink all of my cash into one home in it. You could have a hard time getting the equity out if/when you need it.</p>
<p>Thumper, I’ve given up, most of the world seems to believe someone else should pay for their kid’s education. These threads have made me consider stopping the donations or specifying where they go, I realize I’m supporting kids whose families have socked away funds.</p>
<p>You realize that even if this meant you would qualify for aid, that aid has a good chance of coming to you in the form of loans. You’d swap one loan for another…a loan that may carry a higher interest rate than your mortgage.</p>
<p>Agree with all above. I wouldn’t do it. Your home is a risky investment right now and the FA is likely come in the form of loans with a much higher rate than a mortgage.</p>