Is there a savings or non-retirement investment account that an 18-yr-old or parents can utilize which will not be considered in determining financial aid awards for college?

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  • #80377 Reply
    Mary

      Is retirement-saving the only option? Is there any kind of account that is more easily accessible after college that would not be considered?

      It is my understanding that assets saved in the student’s name count more heavily against them, so maybe there’s no option.

      Just wanted to ask the experts here!

      Thank you!

      #80378 Reply
      Holland

        Open a taxable brokerage in your name but earmark it for the child(ren). That’s what I do.

        #80379 Reply
        Julie

          Roth IRA can be accessed for certain things like a down payment on a house up to a certain amount etc

          #80380 Reply
          Jessica

            A Roth IRA is considered a retirement account and is a nonreportable asset for FAFSA, but the principal can be withdrawn at any time and both principal and earnings can be withdrawn for qualifying educational expenses. However, this would require you to plan several years out and for the student to have income. It’s the most flexible nonreportable asset, but still not very flexible. That’s the closes solution I can think of.

            #80381 Reply
            Holland

              529 will count as a parent asset even if the student has it in their name.

              #80382 Reply
              Matthew

                Contributions the last two years count for FAFSA, so the contributions wills still count.

                Even when it does, the difference is only $1,400 per $10,000.

                #80383 Reply
                Lori

                  Unless you are poverty level financially putting extra $$ in a savings account is not make to make much difference in financial aid amount.

                  Go to the FASFA estimator and run numbers, the difference is very small. Much better to plan for you personal saving needs and not worry about FASFA.

                  #80384 Reply
                  Kris

                    Parent assets are about 6%. Student assets are about 20%. This only matters at meets needs schools. Edit: and retirement accounts are excluded.

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