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MASH Cash Dear Maggie, Mutual Funds and investments prevented me from getting any financial aid for college this past year. I've got about $16,000. I'm going back and forth on deciding whether or not to use my investments for my college tuition or not. Is there a way I can get around spending this money? (I'll be going to school full time and won't be able to work much, hence the need for aid ...) Stingy on Staten Island Dear Stingy,
Keep in mind two things: 1)
The transfer should be done prior to filing the financial aid form ().
2) Make sure the person to whom you are transferring the money is a trusted person; a family member is best. Boyfriend or girlfriend is definitely a no-no. That person has to be willing to pay any tax owed; and be around to transfer it back when you are finished with school. |
The
standard financial aid form requires you to state your assets and
your income for last year. So anything listed under your Social Security
number has to be listed (because it will be noted on the interest/dividends
or capital gain form on your tax return and the college could ask
for the tax return). So the trick is getting your assets out from
under your Social Security number. Perhaps your parents or a sibling
could hold those assets until you need them. Maybe you will need them
for college tuition - most people do have to pay something - but at
least it may increase your aid package.