Maximizing CSS Profile

Paying for College
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<p>What are some tips for getting the most of the CSS Profile (ie. getting the most financial aid?)</p>

<p>I heard reducing the student's savings by removing them from a savings account is effective. Any other suggestions that significantly improve CSS Profile numbers?</p>

<p>thanks!</p>

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<p>A lot depends on how much money you're talking about. If the student has $3000 in their savings, you are not going to net much by moving it into parent accounts. Also, anything you do in terms of moving now could be questioned as your interest, etc will be computed by what's in the accounts for the 2006 calendar year. The best advice about "getting the most" is BE HONEST. Just do the forms. If you are fortunate enough to have some student assets, consider yourself fortunate. There are some folks here who can give you some tips on what to do with your accounts prior to filing the FAFSA and Profile. We did make one expensive essential purchase for each of our kids prior to filing the FAFSA for the first time...for DS it was a new trumpet and for DD an English horn. But those purchases could be easily justified to anyone asking...DS is a music major, and DD a music minor (and one of only two oboe/English horn players at her college). Consider also, that if you spend money on other things prior to filing for finaid, you will NOT have that money to be used for college expenses.</p>

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<p>I'd disagree with this: "If the student has $3000 in their savings, you are not going to net much by moving it into parent accounts."</p>

<p>There's no asset protection allowance, so Profile will assess 25% of every dime in the student's name. That means that the $3K will increase your EFC by $750 the first year (and reduce the potential aid by that amount), and if it's still there the second year, it will bump the EFC by $750 the second year as well.</p>

<p>Agree with spending down the student accounts on major needed items before filing the Profile (or FAFSA). Transferring the funds to a parent's account would also help, since parent's get an asset protection allowance, and the savings over that amount are assessed at a much lower rate. But that would probably be considered dishonest by a FAO (who may see the interest reported on the tax returns, as noted above).</p>

<p>The student could also contribute some of these assets to a retirement account, where they would be sheltered. There's new rules on 529 college accounts, as well, that provide for sheltering some student assets (check on the details-- I'm not fully up on this).</p>

<p>Also-- keep student income under $3,300 so the student income doesn't get assessed.</p>

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<p>Merry Christmas!</p>

<p>Yeah-- but the minimum student contribution is from Student Income, not Student Assets. The Institutional Methodology (Profile Schools) sets a minimum student contribution from INCOME at $1550 for incoming freshmen (a bit higher for upper classmen). That gets factored into the EFC regardless of Student Assets. So if the student has no income from work, he still shows a $1550 contribution to the EFC from student income. If, in addition, he has $3K in savings, that adds another $750 to the EFC, for a net $2300 reduction in potential aid from the student contributions, instead of just $1550.</p>

<p>So- there will be a student contribtion to the EFC. It will stay at the minimum as long as the student doesn't earn over $3357 ($4656 for an upperclassman). Don't increase the EFC even higher by showing any student assets, if it can be avoided.</p>

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<p>I see. If the student hopes to get an additional $750 in aid (assuming the school meets full need...most do not), then taking that $3000 out of their savings and putting it into parent accounts would help. But it wouldn't be the full $750 off the EFC because that amount would be added into the parent till at a lower rate of use.</p>

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<p>Parents get an asset protection allowance-- so for many, it wouldn't increase the EFC at all. And if it did, it would get assessed at the lower parent rate, between 3 and 5%, instead of the 25% student's rate. Better still, spend it down as you suggested on student needs prior to filing.</p>

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<p>SBlake, Some here have suggested that if you are going to transfer assets and move monies around, it is better to do so well in advance of the filing of the FAFSA (not spending on student needs...moving money from account to account). I went to a finaid seminar which suggested that IF you planned to do this, it is best to do it 3 years or more before filing your first finaid form. Do you know if there is any credibility to this?</p>

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<p>I'm not expert, just a parent who went through the process. But I think there's an advantage to making these sorts of transfers ahead of the base income year-- in part because it may generate a red flag if the student shows interest income, but no assets.</p>