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<p>Good advice.</p>
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<p>I mean repositioning to assets that might not hurt me for aid purposes, i.e. (possibly) annuities, life insurance, etc.</p>
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<p>Working on the first, definitely doing the second, just exploring all options.</p>
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<p>I mean relatively low compared to the assets. </p>
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<p>Dipping into savings is certainly not a long term goal. Spouse has, in fact, been looking at other related jobs that require similar expertise and skill. The particular career will never become extinct, and there will always be demand for certified folks. It is extremely difficult to get to that level. It’s just with current economy (downsizing, etc.) in our major city, the supply of available certified talent is higher than normal. Plenty of jobs at that level are available elsewhere, but moving is not an option at this time. We do expect success in the job hunt at some point, just don’t know when.</p>
<p>*Spouse has, in fact, been looking at other related jobs that require similar expertise and skill. *</p>
<p>Ok…so your child is a junior, it’s very likely that spouse will get a job within the next year or so. If your spouse were to find employment within the next 9 months, then during 2014, the spouse will be employed for at least half the year. That mean when you fill out FAFSA and CSS Profile in 2015 for your child, your new higher income will likely not be eligible for aid…no matter what you do with your assets. Are you ok with paying full freight once spouse gets a job? Or will you feel that once your spouse is reemployed that you’ll have a lot of catch-up to do…home repairs, car replacement, rebuilding savings, etc. If so, then merit is the most flexible option. </p>
<p>Is your work income really $70k now? Does the $400k in investments generate any income? If so, then you need to add that to the $70k. So, your work income, income from investments, and the $400k will all come into play.</p>
<p>I’m not sure where you can move $400k (or a lot of that) to where it won’t count. Are annuities exempt? And, what if you do that, and then spouse remains unemployed? Or gets employment and then soon loses employment? Won’t you need that money to be available?</p>
<p>^ I wouldn’t say “very likely” (since I have been saying that for 2 years), but that’s the hope. If spouse gets one of these jobs, then financial aid becomes a non-issue. The six-figure-plus salary is more than enough for everything. We could afford full pay anywhere (wisdom and value of doing so is a separate discussion).</p>
<p>Salary is 43k, less 11k retirement contribution (W-2 wages 32k). I’m also part owner of my company, which will generate K1 profit of 30-40k. Funds generate about 11k in ordinary dividends, plus 6k in tax exempt dividends.</p>
<p>was your spouse laid off? if so, wouldn’t they count as a .dislocated worker’ on fafsa and then assets are not counted.</p>
<p>The dislocated worker issue has some kind of income means testing. For instance, obviously if one spouse is earning $100k, then the fact that the other spouse gets laid off doesn’t mean that no assets are counted.</p>
<p>I don’t think the above income qualifies.</p>
<p>now the OP mentions that s/he part owns the company. so, now CSS schools are going to put a VALUE on that company. What’s the value and what % do you own?</p>
<p>oh, yes, you’re right. I think the income limit was 50k.</p>
<p>Will your kids be in college at the same time?
If your oldest is receiving any need based aid, that may give you an idea of how other schools may look at a second in college.</p>
<p>How do those CSS schools determine the value? We have never had a valuation done. Do they just go by my estimate? And, which ones are CSS schools? Would I get better or worse aid from them?</p>
<p>I will have one year with both kids in college. Oldest has a full merit scholarship, so no aid involved. I have never had to deal with FAFSA, CSS, or any of this stuff.</p>
<p>CSS PROFILE just asks the questions to gather information. What each individual school does with that information can vary. Look at home equity value, for instance. Some PROFILE schools won’t include it in assets, some will cap the value by 1.2X income, some 2.4X income and some use the full value. How home/family/owned businesses are valued in terms of assets and income (yes, some deductions taken for business for taxes are often ADDED BACK to income–big hit to EFC).</p>
<p>There was a thread started by wonderful, talented student accepted to Swarthmore, and his financial aid package just didn’t make it for his family. Family business was the issue,and Swarthmore, a school very generous most of the time for financial aid, woudn’t budge. So, it was off to State U (an excellent one, but a very large school) it was going to be. But then another outstanding LAC, came up with a package that evaluated the business earnings, deductions and value differently and was able to offer a a better package. Both Swarthmore and this school are CSS school, and they came up with widely divergent pacakges. With home businesses and special circumstances, it’s nearly impossible to predict how a given school will handle this in terms of financial aid. One has to have many eggs in the CSS Profile basket.</p>
<p>The way it works is that if you want financial aid for any of your kids, you will need to fill out FAFSA and CSS PROFILE (if a school your student is interested in requires it) . There will be a expected contribution calculated by each school. FAFSA comes out with EFC that is for federal aid eligibility. It’s split evenly by how many kids in college. What a college does, is USUALLY, not always but usualy mulitplies the required parental contribution by 60% for the years that there are two in college. </p>
<p>You never had to deal with these things, because you did not apply or get financial aid with your oldest. If you next one gets a ful merit award, you’ll be set. Congratulations to your oldest in getting such an award. Difficult accomplishment and kudos to him/her.</p>
<p>With a family income in the six figures until recently along with more equity than many homes are worth, not to mention full merit scholarship for your oldest, any chance that there is an unused college fund someplace?</p>
<p>And, which ones are CSS schools</p>
<p>Well, pretty much all the top ones that give the best aid. Princeton (I think) doesn’t, but has it’s own similar forms that you’d need to fill out.</p>
<p>These are also the schools that may consider home equity and may consider retirement accts.</p>
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