college financial aid planning

[user123]

What is the name of your state (only U.S. law)? TEXAS

RE:

FAFSA - Free Application for Federal Student Aid

Parents' Income Estimator - Worksheet - Federal Student Aid

For my children's financial aid application (FAFSA), they request or express a desire for my Federal Income Tax Return and adjusted gross income. Of course, I would like to legally do all that is possible to enhance qualification for financial aid. I will be RETIRED when the children are entering college.

1. How, as a retired person (retired Govt employee, GS-13-10), can I enhance my son's chances to qualify?

2. I am thinking about going into consulting work via forming a LLC or S-Corporation. Will the income produced by these companies (me) need to be disclosed, etc ?

3. How to reduce "net worth" ? Gift my assets to my children? Set up a trust? Etc?

any ideas are welcome

Thanks

 

[curb1]

Just a question, but are you trying to give a bad name for government employees? GS 13-10 is $110,000/year.

 

[candg918]

Your children are expected to spend more of their savings on their education than a parent.

Why would you think you would not need to include ALL of your income and assets?

You are lucky enough to have a lifetime retirement funded by the US taxpayers and now want to keep from paying your fair share of your children's education expenses. If you do not want to pay for it, your children always have the opportunity to join ROTC or enlist in the military in order to get college funding. Have them do that and once they no longer have to report your income, you are off the hook.

 

[user123]

Thank you for the replies ! However none of them answered my questions. How about leaving personal agendas and opinions out and answering my questions (ie posting the facts)

What a concept !

I guess you get what you pay for......

 

[Antigone*]

Thank you for the replies ! However none of them answered my questions

That is because there is no one on this board who will help you cheat

 

[tranquility]

I guess you get what you pay for......

Sometimes, far less.

 

[curb1]

1) You asked, "How, as a retired person (retired Govt employee, GS-13-10), can I enhance my son's chances to qualify?

Earn considerably less than $110,000/year.

2) You asked, "I am thinking about going into consulting work via forming a LLC or S-Corporation. Will the income produced by these companies (me) need to be disclosed, etc ?".

Yes.

3) You asked, "How to reduce "net worth" ? Gift my assets to my children? Set up a trust? Etc? ".

Cheat.

Best suggestion, have your child get some grants/scholarships by getting excellent grades.

 

[user123]

1) You asked, "How, as a retired person (retired Govt employee, GS-13-10), can I enhance my son's chances to qualify?

Earn considerably less than $110,000/year. I actually hit the congressional pay cap this year because of TDY activity and working in combat zone...

2) You asked, "I am thinking about going into consulting work via forming a LLC or S-Corporation. Will the income produced by these companies (me) need to be disclosed, etc ?".

Yes.

3) You asked, "How to reduce "net worth" ? Gift my assets to my children? Set up a trust? Etc? ".

Cheat. "Cheat" defined how? Setting up a legal trust?

Best suggestion, have your child get some grants/scholarships by getting excellent grades.

Ah, seven posts later and some answers. A guy posts a question on a legal message board because (hold on, take a seat, this will be a shocker.....) he is trying to get some information. I sense a attitude of anti-government employee, hey, don't be mad at me because I make six digits. Yes you funded it. So did I. Unless you are a tax dodger the law requires you to fund it. Thank you. By the way, you too can dodge IED's and serve your country in a civil service capacity.

Mom is an invalid and no, we don't qualify for Medicare/Medicaid, due to my "high" income (as inferred by a poster above). So I have some other expenses besides college, like keeping mom in a nursing home.

So, yes, I am trying to explore financial aid for the kids.

I posted some simple questions....Seven posts later, I get some answers. Now how hard was that ?

Amazing.

God Bless and thanks for the information

 

[user123]

Sometimes, far less.

Yes that unfortunately quickly became evident....

 

[curb1]

Short answer, you are not going to be able to hide your income/assets. A "trust" will not do anything for you. Provisions are in place for people doing what you would like to do. You either qualify for financial aid, or not, depending on your income/assets.

 

[Dandy Don]

You should have mentioned in your original posting that you had exceptional circumstances (taking care of an elderly family member).

You should submit the FAFSA with the information that you have currently--any future revisions can be discussed in detail with the financial aid officer.

You should also be consulting with a certified financial planner so that all aspects of your situation can be considered and the results you want to achieve can be obtained.

 

[candg918]

Exceptional medical expenses documented on your tax returns will be obvious to financial aid officers at universities who often require copies of tax returns.

I did provide you very significant information,. If you will look at the online resources, you will find that students are required to contribute a significant amount of their resources - far greater than a parent - so gifting to a child to maximize aid will not work.

Finances are always an issue in a college education; my child was unable to attend an Ivy League school because I had 3 younger children at home to feed, clothe, and educate. Your child needs to look at the opportunities available at your state universities and community colleges if finances are such a concern. In my area community college is free to HS graduates from my country for 2 years.

ROTC is a wonderful program. No only does it assist with expenses, it has long term opportunities for both men and women. Another of my children attended an elite university we would have been unable to afford via the program, and the experiences he had during his college and service were exceptional. He has great pride in being a member of VFW.

Given your financial situation, maybe retirement is not the right choice for you at this time. Many - especially those of us with no pension but only 401Ks - are now looking to work many more years. It is a fact of life. You are luckier than the vast majority of Americans; be grateful!

By the way, your initial questions did indeed indicate you were trying to "cheat" the system.