Save In Your Name - Not Your Child's
Many parents insist that they don’t want to have to rely upon financial aid because it may not be available to them. The reality is that more than 60% of today’s college students rely heavily on financial aid. You don’t have to make it the cornerstone of your college funding plan, but you should know what is available and the steps to take to obtain it. Between state, federal and private grants, most students can qualify for funding to cover as much as 50% of their college expenses, sometimes more with financial aid through the college.
Financial aid eligibility is primarily based on your children’s financial position – that is, it considers your kid’s own assets and income to determine need. In financial aid calculation terms, a student's assets count much more heavily than the assets of a parent. Students are expected to contribute 20% of their assets, while parents are expected to contribute approximately 6%.
Some private funding sources will look at the parent’s assets as well, but they exclude retirement accounts, which is a good reason parents should focus on building their retirement accounts above all else.