3 Little Known Ways to Get More Free Money for College
Hello Scott Weingold here with the College Planning Network.
And today we’re going to cover “3 Little Know Ways To Get More Free Money For College”
For parents with college bound kids in the near future, reality is about to set in.
The dreaded college bill is coming.
And coming fast for a lot of families.
If you fall into this category of an approaching college bill, this might be the most important advice you learn all month.
Here is the deal.
An enormous part of having a successful college plan in place is to make sure you are maximizing the amount of free money your family is eligible for.
With that said, here are the “3 Little Known Ways To Get More Free Money For College.”
Little Known Strategy #1:
For financial-aid purposes, the most crucial year is the one that begins on Jan. 1 while your child is a junior in high school—the “base income year.” During that time, and throughout college, income earned or received is counted more heavily than assets in the financial-aid formulas. Try to avoid taking retirement distributions or realizing large capital gains during that period. Load up on contributions to retirement plans before the base and college years, because assets in those accounts aren’t counted in the aid formulas.
Some families may want to defer converting an IRA to a Roth IRA, even though new laws now make it possible for wealthier taxpayers to take advantage of the conversion. Many financial-aid offices may use the income generated from the conversion to reduce the students’ eligibility for need-based aid—unless parents appeal the offer through professional judgment.
Little Known Stategy #2:
Perhaps the most effective tactic is to find a school that really wants your child.
(give an example from a student you have worked with that got a much better merit package from one school vs. another. Give specific school name and dollar figures.)
Little Known Strategy #3:
And last but not least, don’t withdraw money from your retirement fund to pay for college since distributions will raise your income, potentially reducing aid eligibility.
Unfortunately, we’re a ton of families fall victim to this one lately. Don’t make this same mistake.
There you have it, 3 Little Known Ways to Get More Free Money For College.
Until next time…
I’m Scott Weingold with the College Planning Network.