Using MEC to shelter assets, pay for college

srparent15
Wed, 21 Jul 2021 00:00:35 +0000

The problem here is really, why would you want to shelter assets? if you have the assets to pay for college, then the whole thing is shady. There are plenty of people who truly can’t pay for college or don’t have assets. Trying to hide yours so your kid might be able to get financial aid. Also, if you make over 100k, make sure you understand the whole financial aid situation anyway. You also have to report all your tax return information from the year before your kid goes to college. So if your kid is a senior this year, you’ll be sending in your tax return for 2020, so refinancing now won’t necessarily help when they wonder where all that cash went. Also, god forbid something happens to you (not death) and you now have a huge mortage, and a large life insurance policy and need cash? You have no equity in your home and if you need to borrow from your life insurance, you’re be paying high rates. Sounds like the only one who wins here is the life insurance agent. Walk away. Actually, run as fast as you can. On a home refi you’ll also pay a lot for your closing costs. Assets from a house are not the only assets looked at for FAFSA either, so if you have other asests, they’ll be looked at too, so it would really suck for you to try to pull this one over on FAFSA and then not get anything either and the only winner is the insurance agent.