teachermom2834 Posted July 27, 2017 Share Posted July 27, 2017 My ds will be attending a school (in 2018) that only uses FAFSA, not CSS. He works and has a decent savings. I plan to move most of that into his 529 before filing FAFSA in October. I thought there was a student savings allowance that was exempted before they assessed student assets but my research skills are failing me. Is there such a thing? I am just trying to figure out how much cash he can keep on hand and how much we should put in his 529. Quote Link to comment Share on other sites More sharing options...
regentrude Posted July 27, 2017 Share Posted July 27, 2017 Students do not have an asset allowance. 100% of the student savings are counted. https://www.forbes.com/sites/troyonink/2017/01/08/2017-guide-to-college-financial-aid-the-fafsa-and-css-profile/#2d0941234cd4 1 Quote Link to comment Share on other sites More sharing options...
MarkT Posted July 27, 2017 Share Posted July 27, 2017 Students do not have an asset allowance. 100% of the student savings are counted. https://www.forbes.com/sites/troyonink/2017/01/08/2017-guide-to-college-financial-aid-the-fafsa-and-css-profile/#2d0941234cd4 Forbes links do not work - it is best to provide the title of the article and do a search on it 1 Quote Link to comment Share on other sites More sharing options...
RootAnn Posted July 27, 2017 Share Posted July 27, 2017 College Data says 20% of the student's assets are expected to be used each year. Lend Key has a little more information. Student Income has a small protection amount. 1 Quote Link to comment Share on other sites More sharing options...
teachermom2834 Posted July 27, 2017 Author Share Posted July 27, 2017 Thanks, all. I had gathered when I couldn't find it that there was no allowance but I knew I could get confirmation here. Thanks! Quote Link to comment Share on other sites More sharing options...
Pegasus Posted July 27, 2017 Share Posted July 27, 2017 Keep in mind that it may very well not matter where the money is sitting unless the student is eligible for a Pell grant. Most schools do not meet need so being able to demonstrate more need doesn't actually gain the student any extra funding. Quote Link to comment Share on other sites More sharing options...
maize Posted July 27, 2017 Share Posted July 27, 2017 The one place I think the money would not be assessed is in a retirement account. If he does not need to access it he could open a Roth IRA and contribute up to $5500 for this year. Contributions (though not earnings) would then be available to withdraw penalty free after 5 years. Makes for a decent savings strategy for kids though I don't know if it is useful for your particular situation. Quote Link to comment Share on other sites More sharing options...
teachermom2834 Posted July 27, 2017 Author Share Posted July 27, 2017 Keep in mind that it may very well not matter where the money is sitting unless the student is eligible for a Pell grant. Most schools do not meet need so being able to demonstrate more need doesn't actually gain the student any extra funding. Yes. That is true for my student attending a public school but my private university student does get institutional financial aid based on FAFSA EFC. Quote Link to comment Share on other sites More sharing options...
teachermom2834 Posted July 27, 2017 Author Share Posted July 27, 2017 The one place I think the money would not be assessed is in a retirement account. If he does not need to access it he could open a Roth IRA and contribute up to $5500 for this year. Contributions (though not earnings) would then be available to withdraw penalty free after 5 years. Makes for a decent savings strategy for kids though I don't know if it is useful for your particular situation. Thank you. I am not trying to avoid having it counted completely but rather I want to make sure it is counted as a parental asset. We will want the money available. 1 Quote Link to comment Share on other sites More sharing options...
JanetC Posted July 28, 2017 Share Posted July 28, 2017 (edited) There is an income allowance, but no asset allowance for students. Edited July 28, 2017 by JanetC 1 Quote Link to comment Share on other sites More sharing options...
G5052 Posted July 28, 2017 Share Posted July 28, 2017 The one place I think the money would not be assessed is in a retirement account. If he does not need to access it he could open a Roth IRA and contribute up to $5500 for this year. Contributions (though not earnings) would then be available to withdraw penalty free after 5 years. Makes for a decent savings strategy for kids though I don't know if it is useful for your particular situation. They also have to be working and cannot put in more than they make in a year: http://www.rothira.com/blog/can-teenagers-invest-in-roth-iras. Quote Link to comment Share on other sites More sharing options...
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