Financial aid packages for college can be worth tens of thousands of dollars each year, which is why it’s so important to do everything you can to qualify. Start planning years in advance so you can manage your money in ways that will help you get as much financial aid as possible.
Most forms of need-based financial aid take a hard look at your family’s assets when determining what you can afford to spend on college each year. They’ll meet any need between what you can afford and what the cost of attendance is. Sheltering your assets from aid formulas reduces your family contribution and increases your financial aid.
The federal financial aid forms don’t ask questions about annuities and cash value life insurance policies, so these are a great place to put funds that would otherwise be considered assets available for college costs. In particular, focus on putting money into qualified annuities, a category into which most retirement plans fall, so private schools don’t take the money into account either.
Planning for college financial aid is a big process, but Brighton Escrow is here to help. Contact us today with any questions about how to protect your assets from being drawn on for college costs.
