TIP OF THE WEEK - AUGUST 30, 2010

Did You Know?

Cash Gifts: Cash gifts, which are paid DIRECTLY TO THE COLLEGE for tuition and fees (from people other than the parents) should be avoided. These gifts will be treated as a student ‘resource’ and a dollar-for-dollar deduction in financial aid.
Student Income: The student’s income should be kept at approximately $2,500 during the college years. Depending on the school, certain income over $2,500 may be assessed more heavily. (please note: if presented with the opportunity, it always makes more sense to earn income then to not earn income)
Capital Gains: The family should consider selling stocks in non-college years that would otherwise generate capital gain distributions during college years.
Loan Proceeds: Seeing that loan proceeds are not assessed in the financial aid formulas, it is often better to borrow funds during college years rather than attempting to pay for college by striving to increase earnings, which will decrease financial aid eligibility.


Until next week…


Your Friends At The College Planning Network


PS. As always, if you have any questions on how you're going to pay the upcoming astronomical costs of college, please do not hesitate to contact your College Funding Advisor. They can walk you through several different payment options to help determine the right one for you.