Frequently Asked Questions About How To Afford College

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 In this article, I will address the top 5 most common questions parents asked me about college funding. 

How do I know if my family's income or assets are too high for financial aid?

Use an EFC calculator and a net price calculator (if your child already has some schools on mind) to run an estimate. 

Our income is high.  Should we still fill in FAFSA and CSS profile forms?

1) Do you think your income is really high?  In some schools, NYU, Vanderbilt and U of Southern California for example, because many students are from affluent families, you may not be that rich compared to them.
2) Some organizations may require you to fill in FAFSA and CSS forms to get merit scholarships.  
3) If you want to borrow federal student loans, you also need to fill in the forms.
4) What if something happens (fire, major diseases, lay off etc.) in the middle of a school year?   At the time a student's family is experiencing a hardship, they can't get financial aid because they have never filed the forms.  
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Will applying for financial aid impact my child's chance to get into his/her dream school?

Many top universities are need-blind.   If our child has a special talent or has strong profile, colleges will want the student without any hesitation. Then it doesn't  matter he/she files financial aid application or not.  But if your child is put on the waiting list, colleges usually will consider the affordability of the family.   
Some schools are need-aware, which means that they will take consideration of the finance of the family.

-  Below is a response made by a Boston University admissions advisor:
The overwhelming majority of our admissions decisions are made without consideration of a student’s financial situation. However, for a very limited number of cases, we are need-aware as one factor.

Can my child claim himself as an independent student and therefor get more financial aid?

An independent student must meet at least one of the following 10 criteria:

• You are age 24 or older by Jan. 1 of the school year for which you are requesting financial aid.
• You are married or separated but not divorced.
• You are pursuing a graduate or professional degree.
• You have children and provide more than half of their financial support.
• You have dependents (other than a child or spouse) who live with you and receive more than half of their financial support from you.
• You are serving on active duty (not training) in the U.S. armed forces.
• You are a veteran of the U.S. armed forces.
• At any point after you turned 13, both of your parents were deceased, you were in foster care, or you were in a court's care.
• You are an emancipated minor or in a court-appointed legal guardianship.
• You are an unaccompanied youth who is homeless or at risk of being homeless.​

If I form a LLC and let the company hold our rental properties, will we qualify for more financial aid?

Unfortunately no.   Even though assets owned by your family business currently are not accountable in the FAFSA EFC calculation,  your LLC doesn't qualify as a true business if it simply owns the rental properties, unless you also provide maid services and breakfasts on the properties.
Also, on the CSS profile form,  assets owned by a family business are included in  the EFC calculation.  
In addition, in 2024 when the new FAFSA rules become effective, assets owned by family business will also be included in the FAFSA EFC calculation.