rmtinfl

1) My dh cosigned on a mortgage so that my brother could buy his first home. The mortgage company insisted that my dh's name had to be on the title. Will the equity in this house ($130K downpayment + any equity gained 5 years from now when dd gets ready to apply for FA) count against us (as assets)? Is there any way to get dh's name off the title (I think, it's called quit-deed claim (?))? Would there be tax consequences (gift tax) if he can do this? If he can get his name off the title, would the mortgage (which we can't get rid of - unless my brother pays off the loan) count as a liability?

2) Would it be better to pay off the mortgage on our residence than another type of investment? One advantage is that we wouldn't have to pay the outrageous home owner's insurance here in South Florida. I vaguely recall reading somewhere that retirement funds and primary residence don't count as "assets." Is that correct? Our annual income is around $100K. Thanks.

mom2collegekids

First of all, your income & assets may be too high for much F/A.

And, did you realize that most F/A for people who aren't low income is just student loans? It's not usually free money. Therefore, before you go to any extremes to change titles and such, you need to think about that. I know that the term "financial aid" can be misleading, especially for those who aren't low income.

Public schools tend to use FAFSA, and privates tend to use PROFILE.

I think (not sure)...One or the other will look at equity in home (maybe they're concerned that people will just pay off a mortgage rather than pay for their child's education).

However, the point may be moot, if your EFC is too high.

What are your child's stats; she may qualify for some merit money.