is it true?

<p>is it true that if your college fund in the stock market has more than one year's tuition, then you most likely wont get a dime?</p>

<p>No.</p>

<p>Financial aid is based on the income (mostly) and assets of both the student and the parents. For FAFSA parents have a certain amount of asset protection dependent on the number of parents and the age of the older one. @ 5.6% of any parent's asset value, over the protected amounts, is added to the EFC. Dependent students have no asset protection. 20% of student asset value is added to the EFC. </p>

<p>529 accounts (the main college savings vehicle) are reported as parent assets. Other savings in the student's name are reported as student assets.</p>

<p>i think its in my name</p>

<p>If it is a 529 account it is reported as a parent's asset even if it is in your name (for FAFSA). If it is other stocks or accounts in your name then it is reported as a student asset.</p>

<p>So if you have, say, $20,000 in the account then if it is a reportable parent asset (above the protected allowance) it would increase the FAFSA EFC by @ 1120. If it is in the student name it would increase the FAFSA EFC by 4,000.</p>

<p>I don't know how schools using CSS/profile would treat it. The above is for the FAFSA EFC.</p>

<p>But lulumobile, the reason why you have a college fund is so that you can use that money to pay for college! Just be sure to apply for financial aid the first year (whether you need it yet or not) so that as you use up your fund, the college already has something on file if you really need the aid in the future.</p>