DD got BS Aug 2018. No undergrad debt. Has about $80K left in 529 which is in my name, DD as beneficiary. I’ve told her that is the end of my contributions to her education. She recently inherited $100K (though it will fluctuate since all in investments), but wants to buy a car and save some for house downpayment after grad school.
Has been accepted instate university Occupational Therapy Grad School for 2019 start. OT grad school admission is extremely competitive so I am very relieved. Tuition/fees for 2.5 yr degree about $35K. So 529 should mostly cover that plus housing/books, etc. Unfortunately, that school is DD last choice. But at least she is going somewhere! Obviously instate is the most economical choice, but happiness with location, program quality, and professional contacts is worth a lot as well.
Has interviews at instate private OT grad school, plus two OOS grad schools. One of the OOS grad schools about the same price as private instate (about $80K tuition/fees for 2.5 yr degree). Other is $150K tuition/fees for OOS 2.5 year degree; obviously that price is not worth it, even though it is a higher ranked and better known school.
I know that FA for grad school is all about loans. My questions:
–Is there any point in DD doing FAFSA this year since she is not in need of loans for 2019-20 at any school?
–Does Alabama have any type of merit money for OOS grad students? That could make FAFSA completion worthwhile.
–Does the 529 count as her asset, since I understand that FAFSA asks for assets, even though loans are not needs-based?
The 529 is your asset. You could change the beneficiary at any time if you wanted.
She shouldn’t take any loans. Even if she decided the 80k schools are worth the extra 45k, she still has enough to cover the expense (80+100). Money is perfectly fungible. If she uses her assets, she will have a risk free rate of return equal to the interest rate on the loan.
They do have some merit scholarships, but the website doesn’t indicate whether FAFSA needs to be filed or not for consideration. Merit money is usually about stats, but sometimes finances are considered. Does your daughter have a high GRE?
BTW…some grad schools ask for parent info for merit consideration.
The 529 is YOUR asset…but the $100k inheritance is her asset that will need to be reported.
That’s what I thought re 529. I know she has to report her own asset, which I think is odd, since loans are not need-based. I’ve also read that law and medical schools often ask about parent assets, though again, I don’t know why they would need that for non need-based money.
150 is UAB. GRE is not exceptional. I guess we can call to find out more details.
The $35, $80, $150 are only for tuition and fees, NOT books, housing, food, etc. And some of her housing costs will entail double-dipping as there will be multiple out of state 2 week and 3 month internships (will need to maintain lease near school). So theoretically she could run out of money and need loans toward the end for the $80K schools.
But it sounds like she probably doesn’t need to do FAFSA for the first year. Thanks for your hep.
On the housing- I know a lot of grad students who are using Air BNB (where legal) to essentially swap housing with other students, a visiting professor, nurses doing an out-of-state rotation, etc. So depending on how desirable a college town is where she lands, she may not need to budget for double-dipping on the apartment.