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Am I going to be eligible to any college grants?

HELP Daughter going to college in the fall, We dont qualify for federal grants. Just because we have a 401 k?

  • Daughter going to college in the fall, We dont qualify for federal grants. Just for the reason we have a 401 k savings plan. This is our retirement its not like we can just take it out, there are huge penalities. This doesnt seem fair. Does anyone have any ideas on what else can we do to help with finances, besides loans.

  • Answer:

    I know it doesn't seem fair. Truthfully, though, the formula that the government uses to calculate your EFC *does* take into account the fact that you are saving for retirement -- it employs what are called an "income protection allowance" and an "asset protection allowance." The amount of protection (i.e. the amount of income "sheltered" from the EFC calculation) depends on the age of the student's oldest parent -- the older you are, the less your retirement savings are "held against you." So your EFC may decrease for subsequent years. Philosophically, the government believes that the student and his/her parents are the primary party responsible for the student's college education, so they expect a family to put their "eggs" in more than one basket (that is, they think that, if you can save, it should be for both college and retirement). As such, even for the neediest students, federal grants don't come close to covering today's educational costs. As for what you can do, since for now your EFC is what it is... There are plenty of scholarship awards based on talent/academic rather than on need -- she should focus on those, registering at any and all scholarship search sites, such as these: http://www.fastweb.com http://www.srnexpress.com http://www.scholarships.com http://www.scholarships101.com http://www.finaid.org/scholarships http://apps.collegeboard.com/cbsearch_ss/welcome.jsp http://services.princetonreview.com/default.asp?RUN=%2Fcollege%2Ffinance%2Fscholar%2FscholInterview%2Easp&RCN=auth&RDN=7&ALD=http%3A%2F%2Fwww%2Eprincetonreview%2Ecom http://www.collegeanswer.com/paying/content/pay_free_money.jsp Many parents strike a bargain with their studentsto split the student's educational costs. Perhaps knowing that she will be financing part of her education will help your daughter to make wise decisions about how she wants to spend her money AND her time. With educational costs where they are today, you may very well be dealing with choice between (a) depleting *some* of your retirement savings and retiring a few years later than planned or (b) putting your daughter in a situation where she graduates with so much debt that she herself is *never* able to retire. It happens a lot more than you think -- many parents disagree so strongly with the FAFSA calculation that they choose not to fund their children's education at all. There are plenty of students who graduate with monthly student loan payments larger than the average mortgage payment. And for future years, before you file the FAFSA, check out this website on "maximizing your eligibility" -- I can't say I condone it when people manipulate the system, but the "strategies" on this site are completely legal and the site itself is very reputable: http://www.finaid.org/fafsa/maximize.phtml

carlas12... at Yahoo! Answers Visit the source

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If you havent already, look for loans. Your daughters school might have special loans that she can use that arent stafford.

angel08

I know that a lot of people think this sounds cruel, but millions and millions of people that went to college have done this, and are alive and well today. Your daughter can (gasp!) get a job and work while going to school. I know, that won't leave a lot of time for grabbing a fake ID for the bars and drinking parties, but she has to learn not everything in life is free some time. You can also learn the difference between what she NEEDS and what she WANTS (example - to be a business major, she NEEDS a college with those courses, most states have colleges offering these) but going to an out of state college (almost always more expensive) is something that is WANTED. If the college is too far from home to live home while attending (another thing millions of people have lived through doing) a college dorm is NEEDED, however, a private dorm, college apartment, sorority house room is WANTED. She could also take out loans, again, millions of people have done this and are alive and well today.

innocence faded

Only having a 401K does not disqualify you from federal grants. However, the amount of money in your 401K would. Having a substantial amount of money in a 401K indicates that you're in a better financial situation than the people for which the grants are intended, and thus is the reason for your ineligibility for the grants. You *could* legally emancipate your daughter, and then she could qualify based solely on her income (which would probably be negligible), but you would not be able to claim her as a dependent on your future tax returns. There are also many other issues to consider, such as health insurance, legal rights, etc. You might also see if you can get a low-interest loan against the money in your 401k.

Scotty Doesnt Know

I know how that is, I dont qualify for Federal grants either because my dad has one. The funny thing about it is though, my dad was laid off for almost 2 years because his factory moved over seas and my parents make to much money. I still find it funny that a girl in my class got Federal grants and her parents make more money than mine and also have a 401K plan. But it shoulds liek your daughter will have to do what I am doing student loans.

redwings_girl_4life

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