covan: "I was not able to get through to Mr Baldwin, but I found another article by him that expands on the topic. Here's a partial copy:"Paying for College: Help from GrandparentsBy William Baldwin, Forbes Magazine 2/28/2013Thinking of helping out a grandson or granddaughter? Structure your gift so that it doesn’t mess up the student’s financial aid.If a grandparent, uncle or aunt sends money to the student to help pay for tuition, the gift will show up in the following year’s financial aid application as “untaxed income.” "I call B.S.! Show up where? It will not be on the student's income tax return. Ans assuming that it was spent in the year received, and not on hand when the FAFSA form was completed (as noted in the further comment about money given to the parents), it will not be reported as an asset either."That income will be assessed at a rate of roughly 50%. If you give $1,000, the college will snatch $500."Gifts are not income."This untoward result also occurs when the generous relative sends the money directly to the college billing office."No citation for this statement. The money could be sent without indicating that it came from someone other then the student or a parent.I doubt the accuracy of the advice, especially as a general statement. Regards, JAFO
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra