College Admissions Expert Elizabeth Levine: Saving for Your Child's Education


Make text smaller Make text larger



Photos



  • Elizabeth Levine



Where should I put my money that I am saving for my child's college education?

If you are saving for your child's college education and there's a chance that you will be applying for any kind of federal financial aid when your child heads to college, (loans, scholarships, grants…etc.), keep on reading.

Many parents I speak with, as was also my impression when my children were growing up, feel that the money they put away for college should be put into their child's name. Unless these funds are deposited into a 529 account/plan, which is a plan that is operated by the state, putting money into your child's name can actually be detrimental to the amount of funds the federal government will provide to you.

In order to get any kind of federal or even college specific financial aid the student/parent needs to complete the FAFSA form, the federal government financial aid form. There is a lot of information that needs to be completed and a complex calculation that goes into assessing what a parent/student can pay towards a year of college. There is one piece of the calculation that relates to what we are speaking about here:

+ 20% of a child's assets may be counted towards aid calculations, meaning how much that child can apply towards one year of their college costs

+ 5.64% of a parents assets may be counted towards aid calculations, meaning how much a parent can apply towards one year of their child's college costs

+ When there is money put into a 529 account though, that money is counted as a parental asset at 5.64% vs. a child's asset at 20%

As an example, if you have $50,000 put into your child's name, the government says $10,000 of it can be applied to pay for 1 year of college. If it is in the parents name only $2,820 can be applied.

The financial aid calculation has many factors that feed into the result but being aware of how you can best manage your funds to gain the best possible outcome can make the difference in not only how much money you can receive but what kind of aid as well.

Elizabeth Levine
Signature College Counseling is an Orange County, Hudson Valley based company
that works one on one with students and their families in navigating the admissions process so you attend the college that is right for you.
845.551.6946
Ask The College Admissions Expert a Question
www.signaturecollegecounseling.com

Make text smaller Make text larger

More From The Ask The Expert

  • Quickbooks Expert Rochelle Dejong: Income Tax Preparation
  • College Admissions Expert Elizabeth Levine: FAFSA Mistakes
  • College Admissions Expert Elizabeth Levine: FAFSA
  • College Admissions Expert Elizabeth Levine: ACT vs. SAT
  • College Admissions Expert Elizabeth Levine: SAT Scores vs. ACT Scores
  • College Admissions Expert Elizabeth Levine: Preparing for College Visits
  • College Admissions Expert Elizabeth Levine: Best Paying Careers
  • College Admissions Expert Elizabeth Levine: Saving for Your Child's Education
  • College Admissions Expert Elizabeth Levine: Financial Aid Deadlines
  • College Admissions Expert Elizabeth Levine: Preparing to Apply to Colleges
  • College Admissions Expert Elizabeth Levine: College Cost vs. Earnings of Graduates
  • College Admissions Expert Elizabeth Levine: Financial Aid Myths
  • College Admissions Expert Elizabeth Levine: Help with Student Debt
  • College Admissions Expert Elizabeth Levine: Letters of Recommendation
  • College Admissions Expert Elizabeth Levine: Supplemental Essays
  • College Admissions Expert Elizabeth Levine: Free SUNY or CUNY Tuition
  • College Admissions Expert Elizabeth Levine: Pretigious Institutions
  • College Admissions Expert Elizabeth Levine: Terms for Financial Aid
  • College Admissions Expert Elizabeth Levine: Marketing Materials from Colleges
  • College Admissions Expert Elizabeth Levine: Participating in College Level Sports
  • College Admissions Expert Elizabeth Levine: Visiting Colleges
  • College Admissions Expert Elizabeth Levine: Getting a Jump on the College Search
  • Comments

    Pool Rules



    MUST READ NEWS

    Orange County Land Trust’s 2018 calendars on sale now
    MOUNTAINVILLE — The Orange County Land Trust 2018 calendar, featuring the award-winning...
    Read more »
    Image

    Orange County residents urged to shop local on Small Business Saturday
    GOSHEN — Orange County Executive Steven M. Neuhaus and President and CEO of the Orange County...
    Read more »
    Image

    Woodbury Common Premium Outlets to kick off holiday season
    — Woodbury Common Premium Outlets will kick off the holiday season with extended hours, special sales and a one-of-a-kind...
    Read more »
    Image

    Newburgh Symphony to perform first holiday concert
    — The Greater Newburgh Symphony Orchestra will perform its inaugural Holiday Concert on Saturday, Dec. 16, at 4 p.m. at Aquinas...
    Read more »
    Image

    VIDEOS



    E-NEWSLETTER

    Sign up to get our newsletter emailed to you every week!

    • Enter your email address in the box below.
    • Select the newsletters you would like to subscribe to.
    • Click the 'SUBSCRIBE' button.

    * indicates required
    Community Newspapers


    MOST COMMENTED



    Weather in Monroe, NY