Northwestern does use the Profile. And for ED, that has already been submitted…so assets for this upcoming school year are set.
I agree with Middkidd. The way to spend down the asset is to use a portion of it annually on college expenses.
At least some of the family contribution is likely based on your parent income too. Please don’t forget that part.
I am not trying to spend all of them. Move my son asset to my asset to lower financial aid
That money is your son’s money, right? How would you just move it? Would you want him to gift you some of that money? There is a limit to how much he can do annually. He can’t just move the money into your bank account…regardless of where it lies, it is still HIS money.
What is your objection to using this money to fund your son’s college costs…if that is what his mother wanted it to be used for?
And as MIddkid noted on your other thread (it is confising having two almost identical threads, by the way), moving the asset to your name might not matter at all as Northwestern is a Profile school. That difference in asset allocation…20% to 5.6% is for the FAFSA, not the Profile.
Sounds like you are getting dangerously close to financial aid fraud, maybe you are not finding the rules easy to understand? (Is English not your first language)?
How much was the life insurance? $100,000 or higher or lower?
What is your FAFSA EFC?
I am not committing financial fraud. Since my was suffering for cancel 7 years, we have a lots of debts to pay. That,s why.
Since it is annuity fafsa don’t count as an asset, css profile count as an asset.
EFC is $30,000
What are you talking about? All you really care about is what Northwestern uses…and they use the Profile.
An inheritance is not income. But an annuity gives out a distribution…and I believe that is considered in the FAFSA and Profile formulas.
I thought it was not. But it is counted as asset. That’s why I have a question as a title.
You cannot reduce yoir son’s assets by oaying down your family debt. Your son’s assets are his…and would need to be somehow given to you in order to use them to pay medical debts from yoir wife’s illness.
Maybe MiddKid will comment.
And your question has been answered…on two different threads.
The asset amount counts this year. It will count again next year. But if you spend some of it on college costs…that asset will be less next year.
Need based financial,aid is computed annually…for one academic year only.
You will reapply next year for the 2016-2017 academic year.
Assets are counted each time. Income is counted each time. Home equity is counted by some schools.
And again…remember, your Income is a huge contributor in terms of computing the family contribution the college expects.
I don’t think there is any rule against the son deciding to use some of that money to pay his mom’s doctor bills or dad’s debt. What rule would THAT be. That isn’t fraud. Anyone can decide to pay someone’s debt…anyone. The dad can’t “steal” the money, but if the son is fine with paying, then that’s none of anyone’s business.
This father wants to move the money to his name to increase financial aid. That is very different than spending down the asset for any reason.
If the money still belongs to the son, it doesn’t matter whose bank account it is in. It is the son’s asset.
Now…if the son chooses to gift a portion of that to his dad, fine. But there is a limit on how much can be gifted, isn’t there…annually?
Sure the son could choose to pay Bills…but the dad is not suggesting that. He wants to know if he can move the asset to his name for financial aid gain.
See post 10. And I believe the father has it backwards. He isn’t trying to lower financial aid…he is trying to raise it.
What would the EFC be without the insurance proceeds asset?
The EFC is $30,000 with the assets.
is that your FAFSA EFC or is that what NU said was the amount you have to pay?
Would yoir son be taking a gap year ,and reapplying to NU next year? OR are you going to ask to defer his enrollment for a year? There is a difference.
Why do you keep saying that there is a limit on how much the son can give to his father? Is that a FAFSA/Department of Ed rule? If there’s a rule like that, then that might be a complication. Other than that, there is nothing barring the son from giving the money to his father to use in paying bills or for anything else.
The only thing that I can think of on an annual basis might be the annual exclusion for gift tax return purposes; if he gives the father more than $14,000 then he (son) could have to file a gift tax return. It’s up to him if he wants to deal with that though; it might be better for the son to pay off the medical bills himself instead. (Or, you know, use the money for college, which I guess is off the table.)
We are thinking both
Yes