<p>If Junior works extra jobs over the summer to reduce the amount of loans required, s/he qualifies for less aid.</p>
<p>If Mom/Dad work a second job to help pay for Junior’s college, the family EFC goes up and Junior qualifies for less grant aid.</p>
<p>If you borrow against the house, the reduction in an asset (home equity) is wiped out by the interest you must pay for the loan.</p>
<p>If you cash out stocks, you pay capital gains tax.</p>
<p>Assets count for FAFSA and Profile but debt does not. So, if you take out loans or assume other debt, it does not lower the EFC.</p>
<p>With costs risin each year, the proportion of loan to grant increasing each year, how do you keep debt from growing faster than your ability to pay it off?</p>
<p>With an attitude like that, its almost UnAmerican.</p>
<p>Charge the customer as much as the market will bear.</p>
<p>Use loans as a method to manage your investment liquidations and cashflow. Capital gains tax is max’d at 15% and dropping will capital losses are deductible at your marginal rate, under GWB programs. You should be jumping up and down and on your knees. </p>
<p>good luck</p>
<p>the EFC and aid you recieve less would not surpass the additional amount of money your parents and you earn during the summer.</p>
<p>It is not a dollar for dollar reduction. You do pocket less than the gross amounts but that is just the way it goes, but you do make out when all is said and done, just not as much if there were no dipping into those efforts. If you borrow against the house, you can get more of a tax deduction for the additional mortgage along with the decrease in assets due to home equity. And if you don’t have the money, you would have to borrow from somewhere tio pay where it would not reduce the home equity numbers for the next years financial aid statement and you may not deduct the interest. It is not that it is such a good deal, but the best alternative.</p>