Investing AND not paying for college

[Jonny_B]

A friend of mine has a small windfall coming in the form of a cash settlement for a car accident. She hasn't had to pay for college so far, and is worried that if she banks the money it'll be taken into account the next time she applies for financial aid or whatever.

Anyone know of an investment she can put the money in in which it wouldn't be counted toward her assets so that she doesn't get disqualified for aid. It might not matter anyway since it's only expected to be about 10k, but it'd be nice to know. Thanks.

 

[APRIL]

Probably a retirement fund, but she won't be able to touch it.

 

[APRIL]

Have her put it in your account as a "temporary" gift.

 

[simple]

Have her put it in your account as a "temporary" gift.

++++

 

[Valve1138]

You can only "gift" a certain amount to certain people before you have to pay taxes on it.

 

[Thorn Bird]

i think that number's up to 11K now.

 

[Troy McClure]

A friend of mine has a small windfall coming in the form of a cash settlement for a car accident. She hasn't had to pay for college so far, and is worried that if she banks the money it'll be taken into account the next time she applies for financial aid or whatever.

She may not have to worry about it, but that's going to depend on how she reports info for her financial aid. If these forms only care about her income for the year, she should be okay since these kinds of awards don't count as income.

I'd tell her to pull out her old forms and see just how this stuff gets reported.

 

[ERage]

She may not have to worry about it, but that's going to depend on how she reports info for her financial aid. If these forms only care about her income for the year, she should be okay since these kinds of awards don't count as income.

I'd tell her to pull out her old forms and see just how this stuff gets reported.

QFT, and it isn't a bad idea to visit the school's financial aid office to talk to a financial aid counselor. I think that what she is getting is compensatory damages, so that is not reported on the FAFSA form's family income line.

Best bet is talk to the people who know about that stuff, usually a school is more than willing to help a student attain as much aid as possible...only means good things for the school.

 

[Jonny_B]

awesome advice. i'll pass it on. thanks.

 

[JAXvillain]

i think that number's up to 11K now.

12k

 

[fly]

How much money does she make now? 10k gonna put her over the line?

 

[b_sinning]

I thought most retirement accounts have stiff penalties for early withdrawal.

 

[JAXvillain]

I thought most retirement accounts have stiff penalties for early withdrawal.

yes, they do


I just looked at my 401k because of this thread and I'm down 12.6% ytd

 

[fly]

I thought most retirement accounts have stiff penalties for early withdrawal.

Roth's don't. You can take out everything that you've put in at any time.

 

[fly]

yes, they do


I just looked at my 401k because of this thread and I'm down 12.6% ytd

That's good, not bad. You're buying cheap.

 

[JAXvillain]

Roth's don't. You can take out everything that you've put in at any time.

interesting...your input into that is from post tax income though, right? so you can't be taxed on it twice is why there are no penalties

 

[Valve1138]

yes, they do


I just looked at my 401k because of this thread and I'm down 12.6% ytd

I'm down 7.6% myself. Fucking bullshit.

 

[JAXvillain]

That's good, not bad. You're buying cheap.

while that is true I still don't like to see minuses because I did lose money regardless of if I'm getting fund shares cheaper now

 

[fly]

while that is true I still don't like to see minuses because I did lose money regardless of if I'm getting fund shares cheaper now

You haven't lost anything. Its all monopoly money until youre 65.