CSS Profile Question: Student Assets/Savings Bonds

Paying for College
1

<p>We're in the midst of tackling the Profile and I have a question about Profile question SA-110A in the Students Assets section, which is looking for a listing of student assets. One of the investments included is savings bonds. I was wondering if a third party had took some of their own savings bonds and added(but not withdrew his/her own name) the student's name to the bonds at a later date, then would these bonds be included among the student's own assets?</p>

<p>I hope that the wording of my question isn't too confusing. This is our first time with these forms and they're rather intimidating. I've received some valuable information from scanning the existing threads in this forum, including purchasing the "Paying for College Without Going Broke" book. I'd really appreciate any additional advice that you could give me regarding this question.</p>

2

<p>I have a similar question- bonds are in name of my d and her dad..are they considered hers or his?</p>

3

<p>"A savings bond registered in the parent's name counts as a parent asset (low impact). A bond registered in the child's name as a single or co-owner counts as a child asset (high impact). If the bond was registered in the child's name, but parent's (owner's) funds were used to purchase the bond, the parent may change the beneficiary."</p>

<p><a href="http://www.finaid.org/savings/accountownership.phtml%5B/url%5D"&gt;http://www.finaid.org/savings/accountownership.phtml&lt;/a&gt;&lt;/p>

<p>If you can figure a way to count them as parental assets, it would be to your advantage.</p>

4

<p>More info here:</p>

<p><a href="http://www.publicdebt.treas.gov/sav/sbregistr2.htm#effects%5B/url%5D"&gt;http://www.publicdebt.treas.gov/sav/sbregistr2.htm#effects&lt;/a&gt;&lt;/p>

<p>Apparently you can change the registration to drop the name of one of the co-owners. Sounds like there are a few hoops to jump through, though.</p>

5

<p>To answer the original questions posed, - Does the student own the bonds in the case of "parent or student" registration? - I'd say yes.</p>

<p>From sb7's cite in #4:
"Co-ownership means there are two people named on the savings bond and that each has equal ownership rights to it. Their names are connected by the word "or" on the face of their savings bond. Either may legally redeem the savings bond without the consent or knowledge of the other."
and
"A co-owner has full ownership rights to a savings bond, including the legal right to redeem it and dispose of the proceeds without the knowledge or consent of the other co-owner."</p>

6

<p>Thank you for the responses. I had a feeling that the co-ownership would count as student assets, but I appreciate the confirmation.</p>

7

<p>If there is co - ownership . would that not split the value in half ( like they do for trust ownderships according to FAFSA rules?)</p>

8

<p>No, sorry. Read the links above.</p>