It’s time to bust a few myths about saving for college. One we hear a lot from parents is that saving money for college will cost them in financial aid. Except for a few rare cases, this just isn’t true, as explained by higher-ed expert Lynn O’Shaughnessy below. The financial aid you may qualify for has very little to do with what you’ve saved. So parents, keep saving!
“Many parents with college-bound kids believe that hiding assets is the best way to boost their chances for financial aid. But it isn’t.
In fact, the major factors that impact financial aid awards include:
- Parental income
- Number of children in college simultaneously
- Parents’ marital status
- Generosity of the colleges a child is applying to
While some types of assets will count in financial aid calculations, many won’t. For the vast majority of families, assets will not jeopardize their chances for financial aid.”
Lynn O’Shaughnessy, “The Myth of Asset Sheltering and Financial Aid,” WealthManagement.com, February 2018
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