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Author: MetroChick Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 443869  
Subject: Re: anyone know college grants/loans/scholarship Date: 10/7/2012 10:13 PM
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Not exempt, but essentially trivial compared to parents' assets. Just throwing out round numbers, if parents' assets are $300K including property and accounts, what is $1000 for the kid?

A student's personal financial assets are looked at at a higher percentage than the parent's assets.

So this is why financial experts usually advise against putting money directly in a child's name (unless it's so great they could easily pay for their full college bill)

http://www.supercollege.com/guide/guide.cfm?t_id=3&g_id=...

If you look at the calculation for Expected Family Contribution (see Step 3), you can see that any money in a child's name (i.e. savings accounts, stock accounts, etc.) will be assessed by 20 percent. But if that same money is in a parent's name, it will only be assessed by up to 5.65 percent. That means for every $100 in the student's name, you will be expected to spend $20 to pay for college. However, for every $100 in the parent's name, you will be expected to contribute only $5.65 to pay for college. That's a big difference.
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