Most trust funds are not effective means of sheltering money from the financial aid process and often backfire on the family. Almost all trust funds are counted in the financial aid process, often as an asset of the child. This leads to a high impact on eligibility for need-based financial aid. If …
Search Results for: trust
Age of Majority and Trust Termination
The age at which the minor takes control of the custodial account depends on the minor's state of residence and whether the custodial is a Uniform Transfers to Minors Act (UTMA) or a Uniform Gifts to Minors Act (UGMA) account. Each state may have additional provisions affecting the age of …
Glossary of Financial Aid Terms
Below is our comprehensive glossary of commonly used terms related to Financial Aid. Understanding the various terms when reviewing financial aid documents and information is crucial. Utilize this glossary to build your knowledge of financial aid. Need terms in Spanish: English-Spanish Glossary of …
FERPA and Financial Aid
The Family Educational Rights and Privacy Act of 1974 (FERPA) protects the privacy of student records by requiring prior written consent before disclosing personally identifiable information to a third party. It applies to colleges and universities that receive funding from the federal …
Early Awareness Programs
There are significant differences in college matriculation rates among lower, middle and upper income students. While 48% of upper income students will have earned a college degree at a four-year college by age 24, only 7% of lower income students will accomplish the same goal. Even when one …
Account Ownership: In Whose Name to Save?
The financial aid formulas used by the federal government and the schools assess a portion of the family's assets when computing eligibility for financial aid. Under current financial aid formulas, there are significant benefits to saving the money in the parents name, despite the …
UGMA & UTMA Custodial Accounts
In most states, minors do not have the right to contract, and so cannot own stocks, bonds, mutual funds, annuities and life insurance policies. In particular, parents cannot simply transfer assets to their minor children, but instead must transfer the assets to a trust. The most common trust for a …
Private Student Loans
Private student loans become necessary after a student receives their financial aid package and learns that there is still a gap between what they’ve been given and what they can afford to pay. Students should not use private student loans until their federal loan options have been exhausted, as …
Maximizing Your Aid Eligibility
Believe it or not, there are strategies for maximizing your eligibility for need-based student financial aid. These strategies are based on loopholes in the need analysis methodology and are completely legal. We developed these strategies by analyzing the flaws in the Federal Need Analysis …
Beyond Financial Aid
Securing financial aid is just one of many important milestones you'll face in your college career. Discover additional college-related information to help you make smart decisions along the way: College Selection Choosing the right school can be a challenge, these resources will help you …
