<p>It is what it is. Congress makes the rules, so those who don’t like them know where to complain …</p>
<p>as if that would do any good…but thanks for the very profound advice…</p>
<p>Sounds like you are being sarcastic, but I am being serious. It’s fine to vent. However, action is needed if change is ever to occur. I am not exactly optimistic about it working, but inaction is guaranteed not to work.</p>
<p>Bottom line is that the amount of free money aid from fafsa is low and only really low income families get the full amount. Many if not most of these families can’t afford to fund a 401k in the first place if they even have one available. On it’s own it only pays for commuting to a local CC and combined with the loans can pay for commuting to a 4-year public in most states. The big money in financial aid comes from the colleges who collect a lot more info via the profile or their own form and have their own criteria and formulas for awarding aid.</p>
<p>Would you be Pell eligible if you didn’t have to add back your 401k contributions? Which change would you make if you were in charge? Requiring mandatory pension payments to be added back in or not requiring pre-tax 401k or deductible IRA contributions to be added back in?</p>
<p>Annoying, any financial planner with a modicum of intelligence would tell their clients to sink money into their retirement first before spending it on a college education for their children. So, if a public employee, regardless if it’s voluntary of not, contributes toward their “retirement fund” and it is not looked at as income by FAFSA, why should a contribution to a private employees 401K (i.e. “retirement fund”, get it?) be looked at in the same way? And please, don’t give me the involuntary contribution malarkey, that’s my tax dollars going to pay a fully guaranteed pension.</p>
<p>Kelsmom, “action is needed”? So, what about the massive rate of inflation in college tuition; what “action” do you suggest when the supply is far greater then the demand?</p>
<p>Kind of cross-posting here, sorry… but, does the $80k (ish) income level adjust at all if there are multiple children attending college?</p>