Do college care about what your savings are for?

Paying for College
1

<p>My father insists on me tacking on an extra personal message describing that the purpose of our large savings (Let’s say 150k) is to serve as life savings and that I cannot touch that money for college permanently disabled and my mother stays at home as a family caretaker. Despite my repeated insistance that colleges simply will not care abou the purpose of your savings be it for luxury or life savings after a portion has been shielded by FAFSA, he still insists on sending this extra information along with a “Asset Clarification Form” a college has requested.</p>

<p>In the CommonApp and FAFSA, I have already mentioned that my father is disabled so I see absolutely no need to “Think outside the box” as he says. My stance is that such an extra letter is unnecessary given ttwo other sources where I ahve formally stated his disability and that an extra letter with the aforementioned purpose will serve no benefitial purpose.</p>

<p>So simply put, do colleges care one bit about what my family’s savings are to be used for?</p>

2

<p>For many colleges, it won’t make a difference. However, for some, it might. I see no reason not to do it … it won’t hurt, but it might help. Again, it won’t hurt.</p>

3

<p>Thank you for the reply. I shall take his advice then.</p>

4

<p>If, indeed, your savings are on the order of $150K, they really are not all that large. Do your best to explain the big picture.</p>

5

<p>If that money is supposed to be instead of life insurance since it sounds as if he doesn’t qualify for life insurance, why not put the money into a deferred annuity? Annuities are not considered on the FAFSA.</p>

6

<p>The short answer is “no” they don’t care. You may be able to get consideration for an unusual circumstance, but their feeling is that you should be using a portion of your savings for college costs. They know that your savings are not all for college so they only expect a certain percentage, but they will put that percentage into your EFC.</p>

7

<p>Given the particular situation, though, it is possible that an explanation may yield better aid. As I mentioned, it very well may not … but I would absolutely try in this case.</p>

8

<p>Thank you for the advice everyone. I will include a personal letter to clarify the purpose of those savings.</p>

9

<p>Your college has asked for an asset clarification form. So, yes…do include any additional information that will clarify your assets.</p>

<p>Your dad also should know that his assets are tapped at about 5.6%…so it would be about $7000 added to your EFC for the upcoming year…actually less as there is an asset protection allowance. The FAFSA formula does not include the FULL amount of the asset.</p>