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Paying for College
21

<p>My advice is probably to have the student take a leave from school the year after he gets the money. So if he gets the settlement his freshman year of college, have him take off the next year. That way the money doesn’t count as income, just an asset. And then I would look into other possibilities and I would start by getting the book How to Pay for College Without Going Broke. </p>

<p>If the parents is able to pass a simplified needs test, then I believe that once you’re past that year, it might not even be counted. </p>

<p>And yes, if I had to do it twice, I would.</p>

22

<p>I think calmom has found a gem with the professional judgement link and this could be explored with each school that is a serious contender, once admission decisions are received. Scottaa is also right that, if simplified needs is not in play, moving the money to a 529 account would shield it more effectively from the asset calculation, although it would likely be assessed the standard 10% of taxable distribution penalty when withdrawn…I don’t think there is any exclusion for medical expenses.</p>