Financial Aid Forms for College

[Anonymous]

How do IRAs for kids affect financial aid? If someone wanted to contribute to a retirement account in their kid's name for the child to use 40 years or more later, would it hurt the family's chances for financial aid?

[Anonymous]

Anonymous wrote:How do IRAs for kids affect financial aid? If someone wanted to contribute to a retirement account in their kid's name for the child to use 40 years or more later, would it hurt the family's chances for financial aid?

On the FAFSA, kid's IRA wouldn't be counted. (But, of course, kid needs to have equivalent earned income to contribute to IRA--you can't contribute if they don't have a job and can only contribute up to their income level). On the CSS Profile it would be reported and it would depend on the kid how it was treated. It could be perceived as a financial aid dodge and impact aid.

[Anonymous]

I filled out FSFA and I only have around four million in assets. A few of my daughters schools required it Reason given is there is a small amount of merit aid to be given out and they want to confirm you are eligible for no financial aid or consider the financial aid when they give out money.
I filled FAFSA and CSS for Loyola MD with my actual income and assets. Was surprised they offered daughter 25K for all four years a total of 100K. Of course she did not go as she claimed it was only a safety school.
American offered 10K
Fordham Uconn and Syracuse all 15K

she actually got offered Merit at 100% o schools all between 10k and 25K.

[Anonymous]

Anonymous wrote:How do IRAs for kids affect financial aid? If someone wanted to contribute to a retirement account in their kid's name for the child to use 40 years or more later, would it hurt the family's chances for financial aid?

Your 401K and equity in primary home are also counted on CSS.

[Anonymous]

she actually got offered Merit at 100% of schools all between 10k and 25K.

Wow! Congrats. She must have had impressive credentials. It'd be great if we could get 10k off per year. (I'm PP with 3 kids).

[Anonymous]

We have savings, high home equity, and 529s. Our HHI is about $160K/year. We filled out the FAFSA.

I think it's the only fair way for colleges and scholarship organizations to know what you need to attend. They can also see that you are in the donut hole-- you aren't going to get a lot of need-based financial aid at this SES level. But you can't easily afford four years of college.

I found that it was required for a number of colleges and scholarships. It paid off -- DD received 3 outside scholarships and merit aid at all the schools to which she was accepted. It wasn't the total amount (we don't need that because we have savings) but it was enough to help ease the pain of the cost of college. It all worked out fine. I would say to fill it out. Most of it will self-populate from the IRS web site.

[Anonymous]

Tes OP. Don't get caught up in trying to figure out what you are eligible for. They way many schools calculate financial aid and merit varies widely.

The FAFSA is easy to fill out. They have a special tool that allows you to pull info. right from your tax returns. The CSS is a little trickier and more involved.

Our HHI is around 190K and we received nearly 50% off in financial aid. No one on this board can tell you what you will receive - just make sure you have a financial safety - a school you can 100% afford and then apply aid.

I don't understand why people just make blanket statements, like "you'll get nothing"... it's not true for every school or family - too many variables involved.