do parents assets affect financial aid

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Parents frequently assume that their assets will wreck their chances for financial aid. Fortunately, parental fears about their investments are usually worse than reality. You can become a hero to your clients if you can explain the real story behind the role that assets play in their financial aid determinations.

People also ask


  • How does parent income affect financial aid?

  • These include being at least 24 years old, being married, providing the majority of financial support a child or other dependent, pursing a graduate degree or having no parents. Parent income does not affect financial aid at all for independent students. Which Parent?

  • How are student and parent assets assessed for financial aid?

  • Here鈥檚 a basic breakdown of how student and parent assets are assessed and how they affect your financial aid package. Colleges expect that up to 20% of the assets owned by a dependent student will be used toward college expenses.

  • How do financial assets affect financial aid eligibility?

  • As you can see, in general, the student鈥檚 financial assets have a far greater impact on financial aid eligibility as compared to the parent鈥檚 financial assets.

  • Why do parents transfer assets to their child?

  • Because assets that belong to the student have a higher impact on financial aid eligibility (a student鈥檚 asset will increase the EFC by 20 percent of the asset鈥檚 value, as opposed to 5.64 percent of a parent鈥檚 asset), some families transfer assets owned by a child to a parent.

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