Tag: Tom Smith
The College Financial Aid Gift That Keeps on Giving
by admin on Apr.27, 2009, under Financial Aid
In the financial aid formulas, students have no asset protection allowance and lose 20 cents per year for every dollar in their name. Appearing asset poor can significantly help make sending a student to the college of their choice a financial reality. Gifting is one of the few legal ways this can be accomplished.
Any student at least 18 years of age can legally gift any of their assets provided that no more than $12,000 (2008) is gifted to any one person in any given year. This legally reduces the student’s assets and gets them one step closer to being asset poor in the eyes of the financial aid calculators.
Adult students who have stocks, bonds, mutual funds, cash and the like, should gift relatives and friends. This should be done with the expressed stipulation that the money is to be gifted back upon request, or they will needlessly overpay for college.
Be aware that under no circumstances should the student gift parents or siblings, as the assets would then belong to another family member and still be subject to financial aid assessments. Anyone outside of the student’s immediate household is exempt from any financial aid assessments whatsoever, and only those trusted non-immediate family members or friends should be considered.
