<p>My d is a freshman in college now. The bill for the spring semester isn't due until January. I am wondering if it would be better from an FA standpoint to pay it in Dec. to reduce our savings or will the college take into account that we will be paying the semester from the savings.</p>
<p>Hasn’t your FA already been determined for spring?</p>
<p>If so, what’s your concern? </p>
<p>And, won’t you file FAFSA after those funds are used towards Spring? If you were to pay the school the first week of January, and then file FAFSA later in January, what would your concern be?</p>
<p>It shouldn’t have any effect on your FA one way or another. As M2 said, it is your assets on the day you file FAFSA that matter.</p>
<p>There may be tax impacts to consider - paying in 2011 for expenses for the 1st 3 months of 2012 makes those payments eligible for certain education tax benefits in the 2011 tax year. This may (or may not) be desirable, depending on your individual circumstances.</p>
<p>*There may be tax impacts to consider - paying in 2011 for expenses for the 1st 3 months of 2012 makes those payments eligible for certain education tax benefits in the 2011 tax year. *</p>
<p>So, if you want to avoid any 2011 issues, then pay on Jan 2nd or whatever date that is before you file FAFSA.</p>
<p>It *may *be more beneficial tax wise to pay the expenses in 2011. The OP needs to look at their individual circumstances and education expenses to determine that.</p>
<p>I meant how the payment aka reduction in savings will impact FA for the 2012-2013 year. Since I am a newbie, I’m not sure when returning students’ families apply for FA for their second year. Just remember the hell of getting all the guestimated tax returns and fafsa out on Jan 1. But I have read that it is easier to apply for FA for returning students and that the deadlines are not as onerous. D’s school is also a profile college.</p>
<p>You will still want to meet her school’s priority deadline for FA but returning students often don’t receive a FA package until summer (May-July).</p>
<p>I meant how the payment aka reduction in savings will impact FA for the 2012-2013 year.</p>
<p>Since you report what you have in savings on the DAY that you file your FA paperwork, paying your spring bill when you can in late Dec or early January will lower your bank acct when you have to declare your savings on your FA forms…which you will be doing sometime later in January or in later months. </p>
<p>The bottom line is that you have no need to file your forms within the first few days of January, so pay the tuition then.</p>