<p>My parents seem to think that it is not wise for me to have a bank account or ameritrade account in my name because if I apply for financial aid, they will require me to pay all of that money. Is this true?</p>
<p>The reason I want my own ameritrade account is because I want to start my investment record, so that I can get it audited and official when I apply for jobs and such. This will give me a few years to do so. But, I want to keep investing, and don't want to pay this money. Will they make me?</p>
<p>Student assets are assessed at 20% per year (I believe) and there is no asset protection. In other words all these assets are used. Parent assets are assessed at 5.6% per year but a portion of the assets are protected (the amount depends on number in your family and income...for us it was about $50,000).</p>
<p>Both of my kids had accounts that were custodial accounts with us (the parents) as the primary holders on the accounts. $2000 balance...meant $400 less aid if it had been a student account. In the parent name it was $0 (as we didn't have parent assets in excess of $50,000).</p>
<p>Swimcats can verify my numbers.</p>
<p>Yes Thumper is correct. Students have no asset protection and student assets are assessed to the FAFSA EFC at 20%. Parents have some asset protection which varies depending on the number of parents and the age of the oldest parent. Any parent assets over the protected allowance are assessed to the FAFSA EFC at @ 5.6%.</p>
<p>Ok understood, thanks. Here is another question:</p>
<p>If I put my name as a co- owner on the ameritrade account, would it be considered my assets or my parents assets?</p>
<p>If you parents are the PRIMARY account holders, and the interest statements (1098I) goes to them, then it is their account. If YOU (the student) are the primary holder, and you are the one who has to declare the interest...it's YOUR account.</p>