Helping Independent Child

Modadunn
Thu, 15 Apr 2010 09:26:38 +0000

Was just curious if our (the parents) helping our kid pay off unsubsidized loans will be detrimental to her getting financial aid in the future?

Our D went back to school this year (2009-10) as a full time student. She ended up not getting any grants but only loans in the way of financial aid- some subsidized and some not. We are wanting to pay off the loans that are accruing interest during her time in school. However, she still has a few years to go. For the 2010-11 school year, she did manage to be awarded some Pell Grant money due to her lacking income. (She waitresses and goes to school full time.) We’d like to see her take the subsidized loans again while we “gift” her the unsubsidized loan portion of her academic expenses. While we have an accountant, I was just curious how our helping her out with expenses might then affect her ability to get financial aid for 2011-2012 school year. Is it considered income for her? Anyone know how to help an independent kid without it affecting her independence when it comes to getting financial aid?