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<p>Actually I disagree with this. IF the elderly parents ARE being supported by by the family, they can be listed as dependents, and members of the household. But this will likely be verified by the college.</p>
<p>Also, it is a choice to support your elderly parents or families in other countries and there have been numerous posts here stating so. Colleges could very easily say “this money COULD have been used to support the college costs of this student”. I have not heard here or in the area in which I live any time that a family was granted a special circumstances consideration for supporting EXTENDED family (includes grandparents) in any way.</p>
<p>Now…if the grandparents need this money and the family sends it back to them in the old country, so be it. That money would no longer be in the parents’ names and that would be that. As others have noted, however, if there is significant interest/dividends noted on the tax return and no assets noted, someone will likely question this FAFSA.</p>
<p>And another thing…to the OP…remember that your family’s income also figures into the FAFSA. Unless you are low income without the added money, you may find you don’t net any more financial aid anyway.</p>
<p>$200,000 would pay fund $16000 a year each for 4 years for the three kids. If you added the Stafford loan to each of these kids’ money, you would have enough to fund a public university for four years for all three of the kiddos. If they started out at a community college and commuted from home for two years, you would have money left in the bank at the end of four years.</p>
<p>If the grandparents need the money, send it back to them. 5.6% of $200,000 is $11,200 which is what you will be assessed (approximately) on the $200,000 you have left…per year.</p>