<p>If you make less than $50k/year AND you either: 1) were eligible to file a 1040A or 1040EZ OR 2) had someone in your household receive government means-tested funds during the last 12 months (social security benefits, free/reduced lunch, TANF, WIC, food stamps) you are eligible for the Simplified Means Test. In this case, NONE of your assets will be considered in the formula. This is for FAFSA only.</p>
<p>Profile schools might still look at these assets. However, these schools might also look at the places you might "hide" them, anyway. The better the financial aid, the more careful the school seems to be in making sure the folks who receive a lot of aid actually need it.</p>
<p>The conventional wisdom among aid administrators is that assets in the parents' name don't make a huge impact in the EFC. This is because there is a built in protection factor in the EFC formula. Try it yourself by running various asset numbers through the calculators.</p>
<p>$2500?! The only way I'd say "do it" would be if you were paying ME (and that would be unethical, since I work in financial aid).</p>
<p>I don't know much about annuities except I was always told to "run" and I don't like the idea of savings being tied up. He did say " 1 year minimum depending on the investment, etc"
Which calculator on that link is the one to use?</p>
<p>I had planned on asking if he made comissions on the products that he offers. If so, I will probably pass.</p>
<p>I have heard the $2500 figure from other people that used consultants.</p>
<p>He works with the kids directly, matching them to schools, helping with SAT studies, filling out applications, etc. It's not just the finanacial end.</p>
<p>Well for FAFSA the parent assets (over protected allowance and excluding home equity and retirement accounts) are assessed at @ 5.6% to the EFC. So I think a large part of your EFC probably comes from your income. That being the case tying up your assets in an annuity would make them less easy for you to access for college costs without reducing what you will need to come up with.</p>
<p>You seem pretty literate. You and your student are probably quite capable of finding matching schools and filling out applications and prepping for the SAT without paying someone $2500.</p>
<p>edit: just reread your post and saw your income is @ $45k. EFC seems very high even considering your assets. Home equity is not reported on FAFSA. $300,000 would contribute @ 16,000 to the EFC even without the asset protection allowance. I think you are entering something wrong.</p>
<p>also as kelsmom said - if your income is <$50k and you can do a 1040a or 1040ez instead of a 1040 then your assets will be completely ignored.</p>
<p>The assets are parent assets not student assets right?</p>
<p>30k x 4 = 120k = cost of college for child1 = what we paid for our house 20 years ago, and the bank gave us 30 years to pay it off. </p>
<p>Now I have to pay that amount, 120k, times three = 360k (will actually be much much more than 120k at the double digit rate of increase of higher education) for three kids over the next 12 years. btw, I have 20k to do all this.</p>
<p>ABSURD.</p>
<p>more absurd, I just lost my job.</p>
<p>financial aid in this country is a joke, a cruel empty phrase since there is no real significant aid whether one or million are gaming the system or even if all are playing tby the rules. </p>
<p>The best a presidential candidate will do for us, if I can understand the promise, is help us with 4k or something like that - assuming the student goes to the peace corps. That 4k x 3 = 12k will hardly put a dent in that half a million dollar debt. It is indeed better than nothing, but it does not make the joke less funny, or cruel.</p>
<p>Below are examples of assets that are not reported: </p>
<p>Principal place of residence/family farm. Your parents' principal place of residence is not reported as an asset. Neither is their family farm if the farm is their principal place of residence and they "materially participated in the farm's operation." </p>
<p>A small business with 100 or fewer employees. *If your parents own and control a small business that has 100 or fewer full-time or full-time equivalent employees, do not report the net value of the business as an asset. *
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<p>If you are looking at profile schools then they may treat the business differently.</p>
<p>Sorry, I can't ready every post I only read the first page. One legal way to hide money is by sending it to a grandparent or aunt or uncle's bank account temporarily until you need it. My grandpa has some college funds saved up for me but we're not transferring it over to my account until I know when I need it.</p>
<p>But OP, you shouldn't have to do this. You're upper middle class, unless you have more than 2 siblings your family should be able to pay for a lot of your tuition, and your excellent stats can win you (and already have won you) merit-based financial aid. Need-based aid you only need if you need to go to college for free. And usually upper middle class kids don't NEED a full ride.</p>
<p>idic: Sorry to hear about your misfortune. I would begin contacting FA offices where your kid(s) are and let them know if this is going to affect your need this year - they may be able to come up with something even at this late date. Also, hopefully you'll find a new job soon but, if not, give them a call and explain the true situation when you file FAFSA again in January.</p>
<p>Regarding having to pay $120kx3, it sounds like you're footing the bill for private schools for all of them. All I can say is it's not a bad thing to have your kids' invest in their own education! I know we try to help them all we can, and it seems we're much more involved in the process than our own parents were, but it is ultimately their investment in their future and I think it often helps them more, in the long run, if they understand and plan for this. Good luck!</p>
<p>In our area, to send a kid to a state school comes out to less than $5K a year in tuition. You then have to factor in the cost of transportation which usually means a car if your family needs flexibility in time. A car also allows the student to work part time, and if you are lucky that just might offset the cost of the car. I've figured that the cost of an extra car here is about $800 a month or close to another $10K a year which can cover room and board at a number of colleges. So if the kid gets a part time job at college, it costs about the same to send him off to a state school as it does to keep him at home. </p>
<p>$30K a year is about the cost of an out of state public uni for a kid. Most private schools will cost about $20K more, in state about $10-15K less and even less than that if the kid can commute. A hard working summer job can bring in $5K which is good spending money for the kid. He can borrow $3500-5000 from Stafford to cut down the costs further. There are often local private colleges that are willing to "cut down" tuition costs so that even a private school can be a bargain. Acquaintances of ours have a D at Fordham for whom they are paying less than they were for her private Catholic high school with the commuter discount, her living at home, her part time job and merit award. Not a bad deal for college.</p>
<p>Where I see the problem is in states that do not have the local options that we do. We have relatives in Delaware who have very limited options. The community colleges are not that hot in terms of preparation, and UD is the only game in the state unless you go expensive and private. No reciprocity with PA that has a number of option. Public transportation is not good so a car is needed on top of all of this. As you go into the west, the options often diminish as there are not that many colleges. This is an area of concern for many families. THough I love the private schools, I well understand that it is a luxury, not a necessity, and I don't see why tax payers have to support those. It's the public schools that need the boost. We are one of the few if not only countries where the private schools have a better rep than the public ones in terms of universities.</p>
<p>I believe there is a limit on the annual amount you can contribute to retirement accounts. Plus if you contribute THIS year, the amount of the contribution will still be considered as income. The amount in the account will not be.</p>
<p>Re: "sending the money to grandparents temporarily"...remember, if you send $300,000 to grandma and she puts it into an interest bearing account, then Grandma will need to pay taxes on that interest.</p>
<p>Re: gifts...there is a limit on the amount you can "gift" to each person annually. I believe at this time it is $12,000. </p>
<p>Also, there is a line on both the FAFSA and Profile for any money that is received from "other sources". If grandma sends you $20,000 for that tuition bill (from the money you sent her), you are required to enter that amount.</p>
<p>Please, don't do anything that is illegal. I say..consider yourself lucky. Many folks do not have $300,000 in non-retirement savings. If that is in parent name, it would add about $17,000 to the EFC for a student. Seems like you could just take that $17,000 out of that $300,000 account, and you would still have more in savings than many people.</p>
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<p>We have low income ($45K) and high non-ira assets $300k and $200K equity.>></p>
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<p>Emerald...this is from the poster with the questions. They have about $300,000 in NON IRA assets. Of course I don't know what that means, but it could be certificates of deposit, savings accounts, etc. NOT retirement accounts. </p>
<p>I'm responding regarding this $300K asset as a non-retirement account because that is what this post implies. If that is incorrect, could the OP please say so.</p>
<p>Regardless...the balance in a retirement account is NOT considered for financial aid purposes no matter what that balance is. The only amount considered is what is contributed TO the account in the tax year used for the FAFSA/Profile filing and that is added back in as income.</p>
<p>I would also assume that by clarifying that the money isn't in an IRA ( or I assume a 401k) that it is some place not considered for retirement- but what does that mean ? gold? ( as we wish we had invested in, instead of stocks/bonds)</p>
<p>$200K equity and $45k income ( I assume before tax), could just mean they live in an area that has appreciated rapidly.</p>
<p>But to amass $300K in savings on $45K income- requires a further explanation.</p>
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<p>But to amass $300K in savings on $45K income- requires a further explanation.>></p>
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<p>Some folks are good savers. Or perhaps they sold property or inherited some money from somewhere. A family could have that kind of savings...we don't...but I suppose you could.</p>
<p>Life is not all about college. Do remember that as you go through financial gymnastics. I just read through this thread which is an oldie, before my time. It appears that the original question was regarding HIDING assets. Illegal. Annuities are legal and MAY be a good idea. However, one thing that is very important about investments is that you have to understand how they work. People go through so much to HIDE and shelter their assets that they often lose a chunk of them because they are dealing above what they comprehend. Annuities have a place, but if you do not understand them, are not comfortable with them, do not understand the drawbacks and risks of them, stay away from them, just as you should stay away from other fancy investments. I shake my head at folks hiding money in the Cayman's or other bank. No guarantee the money will still be there when you go for it if you do not understand exactly what you are doing. And little recourse either.</p>