<p>As we begin the search for D's colleges, I'm looking a bit more at the financial aid forms. As it is now, we can use our 529 plan pay for two years of college without aid...but would be flat-broke in year 3. Is it possible to go into it with savings....and then apply for financial aid once those savings are gone? Or am i going about it wrong? </p>
<p>I believe you can do this. But you might want to consider dividing your 529 over the four years. Or…wait to make the decision until you find out where your daughter is going to college, the costs, and if she receives any merit awards.</p>
<p>There are schools that do not let you apply for financial aid in subsequent years if you never applied as a freshman. Check out the financial aid information while you are checking out everything else at the colleges. It isn’t that big a deal to fill out the applications (especially the FAFSA), so it wouldn’t hurt to fill them out. That also lets your daughter qualify for direct student loans. Some parents prefer to have their children take some responsibility for the costs of their education by taking these loans, even if the money isn’t needed (and some parents repay those loans after graduation as a gift).</p>
<p>The other potential advantage to spreading the funds out is to use the student’s Direct/Stafford loans to fill some of the gap.</p>
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<p>I only know of three schools that have a policy that is something similar to what you state, and none of them are as draconian as your statement suggests.</p>
<p>Colby College:</p>
<p>“Students who do not apply for financial aid prior to admission will not be considered for College grant assistance until their junior year, unless their family financial circumstances change unexpectedly.”</p>
<p>Skidmore College:</p>
<p>“What happens if I do not initially receive financial aid from Skidmore College but later find out I need to apply?
Those students admitted without Skidmore College grant assistance are normally first eligible to receive such aid, if need is demonstrated, in their junior year.”</p>
<p>Smith College:</p>
<p>“Students from the United States who do not apply for financial aid by the published financial aid deadlines will be required to complete 64 credits at Smith before they are eligible to apply for institutional financial aid. This means that a student would be eligible to receive only federal, state, and outside aid for her first two years at Smith; no Smith grant aid would be available before that period.”</p>
<p>Are there other schools to which you are referring?</p>
<p>I would also suggest you check school policies. At many schools, international students who don’t apply as incoming freshmen cannot apply in subsequent years. The quotes above are more in line with what schools do for domestic students, if they have a restriction. </p>
<p>Just check. And check the year YOUR kids are sending applications, as that is the year you really want to know!</p>
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<p>MiddKid, are you saying the OP should rely on that you only know of 3 schools? Or is the quote from KKmama a better idea? I think you are being obsessive about this in continually bringing it up. People don’t have to supply the names of any other schools to make checking out the info for each school being considered the best advice.</p>
<p>Middkidd is responding to MY posts on previous threads about not being able to apply in subsequent years. </p>
<p>Midd…as you can see, I’ve changed my stance.</p>
<p>I agree totally with annoyingdad…check with each college…and check the year YOUR kiddo is applying to college.</p>
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<p>I’ve always agreed that checking out the policy of each school is the best thing to do. No question.</p>
<p>I don’t think that the quote from KKmama is “a better idea,” because I don’t believe that it’s factual. If I have any particular “obsession,” it’s with accurate information being provided to those on CC who are looking for advice. I “continually” bring this up when I see the same misinformation repeated again and again.</p>
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<p>Respectfully, no; I’m only responding to KKmama’s post that I quoted.</p>
<p>To the OP. There are over 3000 colleges in this country…and varying policies regarding just about everything. You should first check the websites in the financial aid sections of schools for which your student has an interest. You may find your answer there. If it’s not clear, give them a call.</p>
<p>And I agree…check this issue out, if it’s an important one for YOU, when you check out other information about the colleges. </p>
<p>Thanks guys, this is all very helpful!<br>
One more question…so say that a student (well, a parent) has $XX,000 in a 529…does the college look at that and say, 'well that’s it for you…no financial aid for you" or do they say “well that’s $XX,500 that the parent can contribute per year, for 4 years.”</p>
<p>(i have a bad feeling that i know the answer to this question 
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<p>Your 529 is assessed at 5.6% of its value for FAFSA EFC purposes. So…about $5000 added to your EFC per FAFSA. I believe it is considered a parent asset…thus the 5.6% amount.</p>
<p>Student assets are assessed at 20%…but I think most 529 plans counted as parent assets.</p>
<p>However, do keep in mind that your FAFSA EFC should be viewed as the MINIMUM you will be asked to pay annually for college. Most colleges do NOT meet full need for all students.</p>
<p>Bryn Mawr is another one where you cannot apply for financial aid in subsequent years if you didn’t apply at admission.</p>
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<p>Student-owned 529 plans are assessed at the same 5.6% rate as parent-owned 529 plans and other parental assets. 529 plans owned by someone other than the student or the parent, that’s a different story and things get more complicated.</p>
<p>FAFSA:
CSS Profile:
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<p>Super helpful ,folks…all of my (mental) energy has been going into helping my D with scores and ECs and school visits…with a vague sense of “now how does this financial aid thing work?” so im happy to meet the regulars in this particular forum and I hope to become a contributor – and not just an asker – in the coming months…</p>
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<p>Thank you, woods1234, this is the first cited example I have seen of a school that has a policy of not awarding institutional FA in any subsequent year if the student does not apply for aid as an incoming freshman.</p>
<p>From Bryn Mawr’s FA Handbook:</p>
<p>“Only applicants who apply for aid from the College and complete that application at the time of admission are eligible to apply for institutional assistance during their subsequent years of enrollment.”</p>
<p>So my apologies to KKmama, there is at least one school that “does not let you apply for financial aid in subsequent years if you never applied as a freshman.”</p>
<p>This policy begs the question of, what happens if a student has the resources to attend Bryn Mawr without institutional FA for the first year (or two, or three), and then runs out of money? Would Bryn Mawr rather see them leave for another school, or does the college suggest that even someone who knows they do not initially qualify for institutional FA apply as an incoming freshman anyway?</p>
<p>“There is no guarantee of Johns Hopkins University funding for students who do not receive funding in their freshman year.”</p>
<p>There are a number of other schools. THe language is often vague. The fact of the matter is that you are always eligible for the federal entitlements, so what is often said is that a student wiho did not receive A XYX Univeristy grant freshman year, may not be considered for one the year after, or is not guaranteed on in future years. I found a number of them a few years ago, but the language is not all that specific. Some of the language is also buried in wording that says you have to meet deadlines for consideration and award of university grants. The deadlines are then considered starting with the freshman year.</p>
<p>The fact of the matter is that if a student who starts out with resources, then runs out of money, it becomes an appeal to personal judgement of the fin aid advisors. If there is sad story, misfortune, for the reason, the school is much more likely to come up with the money. Some schools that are need aware for admissions but do provide 100% of need, are very aware that some try to game the system by not applying for aid to get a bump up in admissions that first year, only to apply for aid the next year. So they request a FAFSA and tax documents for freshman year to make sure that has not happened. If a family does not have a change in circumstances from the earlier year, yes, a school may well not give out their grants. Some may require a sit out period till junior year. </p>
<p>MIddkidd. I’m guessing Bryn Mawr has the same sentiment that other schools have with international students. Where possible, they want to avoid situations where folks cobble together enough aid for the first year, and don’t apply for aid. But these same folks have no resources for subsequent years. Note that Bryn Mawr says they have to apply as incoming freshmen…not necessarily be eligible or receive aid. Just apply.</p>