<p>I will be selling my home in 2012. We will be moving to another state where I want to rent for a year before buying in the new area. The problem is, that the proceeds from the sale of my home will be sitting in some account at the time we have to apply for 2013-2014 money. Will I have to claim this money then as an assett?</p>
<p>We currently make and have enough money that my kids only get the $5500 for the first two years and I think it goes up $1000 for the Junior and Senior year. Will the sale of my home money sitting in an account have an impact on these minimal amounts that they get today?</p>
<p>yes to the first questions and no to the second, if the 5500 + you are referring to are unsubsidized Stafford loans.</p>
<p>After the first protected amount of assets depending on age of older parent, only 6.5% or so of assets are tapped for college each year. While it isn’t ideal to have the house sale funds sitting in the bank, it also will only help you so that you may not have to borrow to send kids to college. Mortgages have a better interest rate than Staffords, etc. Your children may end up not qualifying for the subsidized Staffords, and may only qualify for unsub Staffords.</p>
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<p>Yes</p>
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<p>Is this $5500 the Stafford loan? If so, the amount of your money in the bank will have no impact on your kids’ abilities to borrow the Stafford loan. EVERYONE is able to take the max Stafford loan regardless of income or assets. For freshman year $5500, for soph year $6500 and $7500 for each of the junior and senior year.</p>