Comments on: Understanding Your College Savings Options http://www.bargaineering.com/articles/understanding-your-college-savings-options.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 23:30:41 +0000 hourly 1 By: SmartSecurityPeople.com http://www.bargaineering.com/articles/understanding-your-college-savings-options.html/comment-page-1#comment-301198 SmartSecurityPeople.com Thu, 02 Apr 2009 20:57:28 +0000 http://www.bargaineering.com/articles/?p=4459#comment-301198 Thanks MLR! To follow-up to your 6% comment: Approximately the first $40,000 in assets are not factored for the parents on the FAFSA as well. And of course, retirement and household equity never get calculated in. Unless of course the college requires a CSS form. That is usually where they get you on finding any "hidden" assets. I have not checked the other posts for this series but I am sure someone has probably made mention of this information though. Sorry to clutter your comments.. I just LOOOVE talking Financial Aid! Thanks MLR!

To follow-up to your 6% comment: Approximately the first $40,000 in assets are not factored for the parents on the FAFSA as well. And of course, retirement and household equity never get calculated in. Unless of course the college requires a CSS form. That is usually where they get you on finding any “hidden” assets.

I have not checked the other posts for this series but I am sure someone has probably made mention of this information though.

Sorry to clutter your comments.. I just LOOOVE talking Financial Aid!

]]> By: SmartSecurityPeople.com http://www.bargaineering.com/articles/understanding-your-college-savings-options.html/comment-page-1#comment-301197 SmartSecurityPeople.com Thu, 02 Apr 2009 20:47:31 +0000 http://www.bargaineering.com/articles/?p=4459#comment-301197 Oh yes... that is still the case. Interest earned on savings bonds bears no tax as long as you have comparable educational expenses in the same year that you cash the bonds. However.. don't take your savings bonds directly to the school that your student attends because they will just direct you onto your local bank to cash them in(common mistake). For further information, I.R.S. Publication Release 970 can give you the details Oh yes… that is still the case. Interest earned on savings bonds bears no tax as long as you have comparable educational expenses in the same year that you cash the bonds. However.. don’t take your savings bonds directly to the school that your student attends because they will just direct you onto your local bank to cash them in(common mistake). For further information, I.R.S. Publication Release 970 can give you the details

]]> By: Jessica http://www.bargaineering.com/articles/understanding-your-college-savings-options.html/comment-page-1#comment-301193 Jessica Thu, 02 Apr 2009 20:09:22 +0000 http://www.bargaineering.com/articles/?p=4459#comment-301193 My fiancee and I are of the types that have begun saving for college before we have any kids. We're about 2 years away from having a baby with a name and SSN. Right now we're auto-saving a good chunk of $ each month in Series I bonds to get ahead of the curve for college savings. It's been a while since we set it up but if my memory serves me correctly, isn't the interest earned on these bonds tax free if used for higher education? Any other information you can provide on using savings bonds to save for college? My fiancee and I are of the types that have begun saving for college before we have any kids. We’re about 2 years away from having a baby with a name and SSN. Right now we’re auto-saving a good chunk of $ each month in Series I bonds to get ahead of the curve for college savings. It’s been a while since we set it up but if my memory serves me correctly, isn’t the interest earned on these bonds tax free if used for higher education? Any other information you can provide on using savings bonds to save for college?

]]> By: My Life ROI http://www.bargaineering.com/articles/understanding-your-college-savings-options.html/comment-page-1#comment-301175 My Life ROI Thu, 02 Apr 2009 15:33:29 +0000 http://www.bargaineering.com/articles/?p=4459#comment-301175 SSP -- Good suggestion. Parents are only expected to put up 6% of their savings so it doesn't weight the EFC calculation nearly as much as if you had set up a custodial account with the same dollar amount in your child's name. BUT, that still leaves an advantage to setting up the 529 in the grandparent's name (or as you mentioned.. other trusted person). Thanks for the feedback! MLR SSP –

Good suggestion.

Parents are only expected to put up 6% of their savings so it doesn’t weight the EFC calculation nearly as much as if you had set up a custodial account with the same dollar amount in your child’s name. BUT, that still leaves an advantage to setting up the 529 in the grandparent’s name (or as you mentioned.. other trusted person).

Thanks for the feedback!
MLR

]]> By: SmartSecurityPeople.com http://www.bargaineering.com/articles/understanding-your-college-savings-options.html/comment-page-1#comment-301174 SmartSecurityPeople.com Thu, 02 Apr 2009 14:55:42 +0000 http://www.bargaineering.com/articles/?p=4459#comment-301174 Something to keep in mind on the 529 programs is the impact that it has on your FAFSA results..your EFC (Estimated Family Contribution). If the parents have a 529 program set up in their name it will be included in their asset calculation on the FAFSA. That is why it is probably best for the 529 to be set up in the name of a grandparent or trusted aunt/uncle since their information is not requested on the FAFSA. Good informative article! Something to keep in mind on the 529 programs is the impact that it has on your FAFSA results..your EFC (Estimated Family Contribution).

If the parents have a 529 program set up in their name it will be included in their asset calculation on the FAFSA. That is why it is probably best for the 529 to be set up in the name of a grandparent or trusted aunt/uncle since their information is not requested on the FAFSA.

Good informative article!

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