<p>Will colleges expect me to withdraw from my IRA to pay for tuition? This is assuming I have an excessively large IRA. Will colleges ask for IRA account information to verify the value of my IRA?</p>
<p>First question: Colleges that use Profile use the info collected to determine their institutional EFC, and the IRA info can be used differently by different schools. While you won’t be expected to withdraw from the IRA, a large IRA might (just MIGHT) mean the school would feel you could borrow money more comfortably than someone with no retirement savings. But that is just speculation. Colleges that use Profile use it to determine a family’s financial strength, and each school has its own way of dividing up available aid among its students.</p>
<p>Yes, they might ask for proof. Make a copy of the screen that you used to find out the value of the IRA on the day you complete the Profile (assuming you have online access).</p>
<p>What if I don’t report the IRA at all. Would they somehow be able to track that the account exists?</p>
<p>Don’t lie. Omission is the same as lying. Don’t do it.</p>
<p>I wasn’t seriously considering lying, but I am in such a quandary I had to ask the question. I am okay with using my savings to pay for college. I have saved and feel financially secure. My situation is better than many people I know. But the idea of borrowing money really bothers me.</p>
<p>Don’t ever think that you have to do anything you don’t want to do. There are many, many great schools in our country (and some good ones in Canada that U.S. students seem to like). If one school wants more money than you can pay, there is bound to be one you can afford. The key is careful selection of schools that you reasonably feel you would be able to afford — a couple “not sures” are okay, as they may well work out. BUT … be up front with your child.</p>