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[quote=Anonymous]"If a family of 4 currently has a low income but a large stock portfolio abroad (a family brokerage account, not retirement account, in a parent's name and has been reported to the IRS for years), they're not eligible for aid, right?"

It depends on what you mean by low. If they have a HHI of about $50K or less, then it's possible they'd qualify for a Pell Grant. Might also qualify for more of their loans to be subsidized vs. unsubsidized. At the 25-30 most elite schools that are "meets-need" it might qualify you for some school-based grants. In some states it might qualify you for public grants. The hardest part with the meets-need schools is getting in, give their extreme selectivity.

Where moving money around might make a difference for the average family that doesn't fit the profile above:

* Student assets are assessed at a higher rate than parental assets. So, don't have your kid hold money in an accessible account if you can hold it for them. 
* Retirement accounts, for both parents and students, are shielded under FAFSA. So, put money in there if you can.
* Save as much as possible as soon as possible in a tax-free product like a 529. Having money set aside to pay for a school will give your kid so much more flexibility when it comes to admissions. They can choose their best fit school rather than the cheapest school. Also, schools that are not need-blind for admissions will look more favorably upon your full pay kid than one that needs a huge scholarship, so that could give them a leg up at a school they really want to attend.

Most people don't know that the main driver of your EFC, which is what determines whether you qualify for a Pell Grant or other things, is your income. Parental assets are only assessed at about 6%. So, if you want to lower your EFC, you pretty much have to lower your income. If you are an older parent and your kid is starting college when you're ready to retire, it might make sense to stop earning income IF AND ONLY IF your lower income would be about $50K or lower (like a spouse's income) or if your student is likely to have a strong shot at one of the meets-need schools. (These schools will give financial aid to students with a HHI of about $150K). But if you're going to do this, you have to stop working two years before your kid starts college, since the FAFSA is based on your prior prior year taxes.

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