Is this correct? Financial aid questions.

ohio_mom
Thu, 24 Apr 2008 21:10:43 +0000

“I recommend that the grandparents set up a 529 plan. They can put in up to $55,000 each in the first year. The assets are still theirs and don’t need to be disclosed on either PROFILE or FAFSA and the earnings will grow tax free.”

Be careful on this one: verify how each college will handle this; questions regarding 529 funds may be asked on the CSS Profile Supplement for that school.

In general, you will want to be able live as cheaply as possible while your child is in college. Paying off consumer debt and the car loan is ok - but beware the amount of time it takes you to repay it on a equity loan / line. Of course, once the kid hits college, it gets harder to pay off debt.