Financial aid is more than likely an important aspect in deciding the next four years of your life. However, everyone always tells you what to do in order to maximize your aid. The one thing everyone forgets? What not to do!
- Don't save money in the student's name. Student assets can be assessed at up to 20% under Federal financial aid formulas.
- Do not set up a visit with a school's financial aid office without proper documentation to back up any financial claims you plan on making.
- Don't inflate your income. Avoid using any potential bonuses and retirement distributions when filing for financial aid.
- Avoid paying for college using unsecured debt (like personal loans). These loans are subtracted from your assets under financial aid formulas.
- Do not dig into retirement funds in order to fund a college education. This will raise your income and even reduce your financial aid eligibility.