My student will not qualify for any aid, what can I do?

drgreenandfam@hotmail.com's picture
By drgreenandfam@h...
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I have a junior in high school who will not qualify for any need based financial aid.  He is a great student and will probably be able to get into some good (and expensive) colleges.  Do I have any options besides taking out loans or paying the cost out of my pocket.

Any suggestions would be appreciated.

 

Are all college scholarships tax free? ›
Kurt Supe
Wed, 03/11/2009 - 13:47
Kurt Supe's picture

You have lots of options!

 

I would suggest that you come to one of our free live events.  We spend a lot of time on this subject.  You can get more information here: http://indycollegefunding.org/content/local-events   
 
How you purse the options available really depends on your situation.  If you will not qualify for need based financial aid at higher priced schools you probably have a high net worth, high income or both.  If this is the case you can focus on tax strategies.  Or I like to call them tax scholarships.  In other words if you do not have to send money to Uncle Sam you can use it to pay college cost. 
 
Here are a few examples of tax scholarships:
 
If you have a small business, home based business, rental property, commercial property or any income outside of just W-2 wages you can shift income to your student at a zero or very low tax rate.  
 
You can gift assets to your child (First MAKE SURE you will NOT qualify for need based financial aid).  If your assets have appreciated or produce income the child can take advantage of their low or zero tax rate.  When using this strategy first talk with a tax advisor to make sure you are not subject to kiddie tax.
 
You should always consult with a qualified tax advisor BEFORE attempting any of these strategies.
 
You mentioned you had a good student.  You can also focus on academic strategies.  Such as increasing SAT/ACT scores, taking AP/IB/Clep, student positioning and merit scholarships.
 
I would also suggest some planning.  Look at your cash flow, assets and liabilities.  Most families have several things that can be changed, repositioned, restructured and/or modified to free up or add needed money for college. 
 
Until Next Time.....
 
Kurt