<p>In some cases, yes, it can cost you aid money. If your child gets accepted to a school that meets 100% of need, but uses a very exhaustive CSS PROFILE vetting in order to define the need, yes, it can cost you the financial aid. Boston College is an example of that. They do count retirement assets in a 401K or similar plans. They told me so themselves. How much? Don’t know. But if you have a large nest egg there, and a goodly amount of savings and some home equity, yes, you can be out of the ball park from aid there, or like schools. And you can cast green eyed glares at your peers who have zilch in such assets and earn what you do, as their EFC might be low enough to get some aid.</p>
<p>But most colleges don’t meet full need. So most of the time, you are in much better shape because if you save, have retirement assets, home equity, etc, you have more options than someone at your income level who does not. The whole thing is one big lottery anyways. One person gets into a school that does meet full need, another doesn’t, with the same stats. It is not a fair process all the way through.</p>
<p>If your kid wants to go to a school with name recognition, on sleep away terms, that costs lots of money, the chances are that it is going to cost the parent some money for that to happen. There are many kids whose parents have little in assets or income, and their kids do get accepted to college but not enough aid is given despite the lack of ability to pay by any measure. So if they have the credit they borrow and hopefully can pay it back better than they were able to save for it, or the kid doesn’t get to go those such schools. If you have the money, your kid has more choices.</p>