Applying for Student loans.

[jnh978]

What is the name of your state? MA

A student has had part time jobs while attending college. He has diligently saved 20,000 in cash and 15,000 in mutual funds.

When the student starts applying to graduate schools and subsequently applying for student loans. These assets will be seen by the school in determining financial aid as well as when applying for student loans.

How does one minimize the affects that these assets have? Should he transfer them to a reletive? Should he transfer them to a trust?

Thank you for your advice!

 

[xylene]

Stafford Loan, Perkins, or Private?

Here is the info on stafford loans.

http://www.salliemae.com/apply/borrowing/stafford.html#subs

These assets don't need to be "hidden" to be eligible for these programs, there is no credit check. Your graduate school will be involved in determining income and asset standards. Even if you can't get subsidised stafford loans, unsubsidised loans are availible to you so long as you aren't in default on student loans.

Perkins loans
http://www.salliemae.com/apply/borrowing/perkins.html
Also subject to your schools requirements.

As for private loans, having assets will undoubtedly increase the chances of getting a good deal.

Or are you asking how to shield these assets from collection in the event of default? That is not an insult- no smart person doesn't plan for the worst case scenario. For that you need real-world advice from a lawyer or at least a competent financial planner who is aware of your exact circumstances , assets and plans.