So I spoke to my mother and she said that she’s willing to put her savings in her 401K since she’s 58 and will be able to use the money shortly. Will UPenn consider the transfer of this money while considering financial aid or no since it’s in a retirement fund?
a couple of issues.
- There is a dollar limit per year that your mom can put in her retirement account without penalty. $150,000 exceeds that amount.
- Any money added to the retirement could be added back in as income...depending on whether she paid taxes previously on the amount.
Average loans for a Penn student add up to 20K for four years.
That is basically unmet need/EFC is higher than family can afford without loans. But technically all but the EFC is met.
Older parents means more allowance for saving for retirement. But not sure if that affects savings - if parents have little in retirement funds and a lot in savings, and they are older, wouldn’t it make sense to take that into consideration, that they plan to live off savings?