| 20 ways to get federal money for
college |
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6. Count your
babies
The amount Uncle Sam expects you to contribute to your child's education
partly depends on your family size. Put simply, larger families
are expected to contribute a smaller percentage of their income
per college-bound child than smaller families. Most parents don't
realize that unborn children count as family members, too. Pregnant
mothers should count each expected child in the case of twins, triplets,
etc., but be sure to get written confirmation from a doctor.
7. Coordinate
your college siblings
Looking to double the size of that aid package? Try doubling the
number of kids you have in college. "Financial-aid formulas
are
very heavily weighed toward yearly income, and just because you
have more children in school at the same time doesn't mean that
you have more income," says Mark Kantrowitz, publisher of financial-aid
Web site Finaid.org.
"Holding back a child or trying to maximize the overlap between
the children in school -- that can have a big financial impact."
8. Serve your country
For students looking for a constructive way to spend a gap year
(possibly to help coordinate the number of siblings simultaneously
in school), Americorps
offers year-long service programs that are guaranteed to never lower
your financial-aid eligibility. Besides giving a small stipend and
a $4,725 educational award upon completion, the program offers invaluable
training, the opportunity to make a difference and great experience
to note on a college application.
9. Maximize IRAs, 401(k)s
Two assets that won't be considered on the FAFSA form are funds
invested in your family's primary home and accounts set aside for
retirement. Investing more money in your future now could result
in the government investing more in your child's future. If you
have liquid funds just waiting to find their way into your retirement
account, invest no later than two years before applying for federal
aid.
10. Buy a house
If you're thinking about moving on up, consider your timing. Funds
tied up in the purchase of a family's primary home are not considered
available assets. Instead of having that equity subtracted from
your child's aid package, use it to your mutual advantage by investing
in something your entire family can enjoy.
11. Spend, spend, spend
Spend your child's money, that is. Because Junior is expected to
pony up a higher percentage of income toward higher education, it's
not unwise to blow student funds first on pre-college needs (such
as such as dorm supplies, a computer if needed, phone cards and
books) before you apply for aid. To avoid gripes and groans from
the peanut gallery, set aside an equal amount in one of your accounts
and agree to reimburse your child at a later time.
12. Get personal in financial-aid
office
Thomas from the University of Southern California warns parents
to never underestimate the power of human resources. "Financial-aid
offices really do want to know if there's something different about
the family," she says. "For example, there's no place
on the FAFSA for high medical expenses, and usually that's not something
families can control." For extenuating circumstances such as
health emergencies, unemployment, divorce or loss of a home, aid
officers can negotiate with the government on your behalf, potentially
winning you a sweeter award.
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