Reply to Best financial planning tip for donut hole families

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]we shifted 600k of assets into non reportable. mostly paying down our mortgage, but also wrapping up a long list of needs: new roof, added an ADU, did dental work, redid driveway, maxed retirement, updated a bunch of legal work like trusts, etc.[/quote]

So this is what I don’t understand. If you have enough money laying around to pay down the mortgage, redo the driveway, new roof, and an ADU (!) how can you possibly qualify for financial aid? We don’t qualify for financial aid. We are a donut hole - HHI about $250, $100k in a 529, and we’ll be full pay. We could use a new roof and all sorts of house repairs, but we don’t have that kind of money laying around. If you’ve got that kind of money what is the point of rearranging your finances? You won’t qualify.[/quote]

Seriously, this person doesn't need financial aid they can completely afford to be full pay, just don't want to pay for college. That's not a "donut hole" family. But aid is mostly based on income, not assets, and most colleges consider home equity so I doubt it will work out the way they want. Unless they actually have moderate income and the assets were from something like an inheritance. Still, most colleges don't meet "need" so it's stupid to spend down the assets you could use for college just on the slight chance you get into one of the very few schools that are really generous.
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