Reply to What money is fair game for financial aid?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]One reason home equity is included by many private schools is that it is not fair to renters not to include it. If Family A has $500,000 in a retirement account and Family B has the same amount PLUS $1million in equity in their home they really aren't in the same financial situation. When the kids finish college  and parents finish working, Family A can sell their home.The renter doesn't have this capital for retirement.

Second, in my neighborhood, a divorcing couple--especially one with an only child-- does this: high earner H gives up all rights to the family home, which is usually worth well over $2 million. He may also agree to put other assets in W's name. In exchange, he pays no alimony.

Mother's income is lower than it would be if she received alimony. Kid receives financial aid. When the kid finishes college, mom sells the family home and now has a lot of money to support herself in retirement, usually as much as she would have gotten from alimony. Dad thinks it's better for him to give his wife assets than to agree to pay alimony plus his fair share of college costs.

College financial planning advisers actually were publicly recommending this strategy.

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The problem is that most schools in the top 100 will ask for father's income tax return as well.[/quote]

My husband never gave his financial information to the colleges for his kids.  The kids demanded he send it to them and he said no, I'll send it to the school, provide me the information and they never did.  So, his wasn't used.  (he also was willing to help pay for college but insisted on paying the school directly vs. the kids or ex-wife)

Its not like schools double check so they probably just lied and said he didn't pay child support or alimony which were both lies and pretended he did not exist.[/quote]

As someone who's been through this process, I find it hard to believe.  Most likely the kids ended up in schools that did not require your husband's info.   The ones that do, go after the non-custodial parent's money like hounds; it's pretty hard to avoid.

However, your husband was absolutely right about the process.  He doesn't need to give any info to the kids.  They provide him login info, he creates his own account and reports the information, but the kids can't see it.  [/quote]

[b]We never heard from any of the schools the kids applied to.  It was very easy to find my husband so who knows what lies they told to the schools.  He is very easy to find.  However, with his income back then (they have graduated), [u]they still probably would have gotten aid as he had no savings/low income[/u].[/b][/quote]

Was that intentional, so they could only finagle a low payment of child support out of him??

He sounds like a real catch. 🙄
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