<p>I am trying to figure out the best way to maximize my financial aid for grad school over the next two years. I am looking at tuition costs of $44k/year and financial aid would be amazing. Currently, I have a CD with around $25K in my name as well as a savings account with close to $10k. Before filing FAFSA, what options do I have to maximize my potential financial aid? I don't want to do anything illegal, just want to know my options.</p>
<p>For example, could I set up my own 529? Perhaps a ROTH IRA and max it out both before and after April 15th? Maybe put the accounts under a parent's or family member's name? </p>
<p>Graduate school financial aid is VERY different from undergrad financial aid. There are no Pell grants, and the only loans are Stafford loans. Grad schools don’t “meet need” based on the FAFSA in the same way as undergrad schools do. Grad school financial aid is typically awarded as fellowships, assistantships, grants, scholarships, loans, and sometimes work study. Most awards are based on the strength of your application to the particular grad program.</p>
<p>Are you going to a master’s program (a professional master’s), a PhD program, or a research master’s program?</p>
<p>Professional master’s programs almost never had need based aid, so hiding the money that you have in your CD won’t do you any good anyway. You could have an EFC of $0 and still have to borrow the entire cost of attendance in loans. Grad schools expect students to finance their degrees themselves and pay it back over the course of their career. If you are planning one of these things it’s good that you have that much money - that means you won’t have to borrow as much when you go into the program.</p>
<p>Only want to get around borrowing is if your job pays for it, you happened to score one of the few scholarships that are available for professional programs (and they are competitive) - they are usually in-house programs - or if you get an assistantship that comes with a tuition waiver.</p>
<p>PhD programs should fund you - pay for your tuition and a living stipend. If you aren’t funded, don’t do a PhD.</p>
<p>Some research-based master’s programs offer assistantships to students that come with a tuition waiver. This is especially common in the sciences and engineering.</p>
<p>Yes, most schools require a FAFSA for graduate school…the Stafford loans ARE available to you by completing this. Parent information will not be required (except in the cases of SOME law and medical schools). However, grad schools do not provide financial aid based on “need” like undergrad ones do…as noted above.</p>
<p>…if the student say waits 1 yr, works for that year, then goes back to school. Will they still look at that 1 yr. of work as income (since they won’t earn that during their stay in the college). Just curious. Have Freshman/College and want to think ahead. Student thinking of taking 1 yr. off and/or post bac before doing grad school/med school. I guess during that year that they do work, they probably have to start paying back undergrad loans,etc.? Just trying to consider the options.</p>
<p>Yes, the student’s income during the gap year will be reportable. The grace period for Stafford loans is 6 months after the student is not enrolled at least half time. For Perkins loans, the grace period is 9 months.</p>
<p>And as mentioned above…grad school financial aid is NOT based on need like undergrad financial aid. In MOST cases it is awarded as assistantships, fellowships, scholarships, grants that are awarded on the basis of the students STRENGTH of application to the grad program…NOT financial need.</p>
<p>Grad students can take out loans, and some schools have work study for grad students.</p>
<p>BUT if you are having son thinks he will get more NEED BASED aid for grad school on the basis of his income or lack of income…he is wrong.</p>
<p>Also, some medical schools and law schools require that parent financial information be provided as well even though the student has met other independent financial aid requirements.</p>