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[quote=Anonymous]Yes, if you are low- or middle-income. The FA formulas assume that all savings in DC's name, including 529s, Coverdells and UGMA accounts, are available to pay tuition. Although not your retirement savings, as PPs have pointed out.

But if you have income over $100K your kid is unlikely to qualify for FA barring special circumstances or until additional siblings start college.

Therefore, you should be saving if you suspect DC may not qualify for FA based on your household income, or if you think DC might get only a little FA that's probably going to come in the form of loans not grants anyway (unless DC gets into a school like Harvard where most aid is grant aid, but that's the exception not the rule). So if you are earning $500K, spending it all on fancy cars and a vacation house will not only fail to improve your chances for FA (because at that income level your chances are basically zip), but your lack of savings means that you will have to finance college entirely out of income, which could limit DC's college choices.[/quote]

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