Can a Family on Fixed Income Afford to Pay Double for an Out-of-State Private College?
My husband took early retirement so we are on a fixed income. We set aside enough money in various college funds for our daughter to attend any in-state public college. However, she is interested in an out-of-state private college that costs approximately double what we have saved. We are researching scholarship opportunities but wonder how the fact that we are retired will be evaluated in the financial aid application process? — Elizabeth J. Money in qualified retirement plans like a 401(k) or IRA are not reported as assets on the Free Application for Federal Student Aid (FAFSA). The current year’s contributions to retirement plans, however, are added back to adjusted gross income and treated as untaxed income to the extent that such contributions are discretionary in nature. Money that is not in a qualified retirement plan, however, is reported as an asset even if you are already retired. The net worth of your principal place of residence is also ignored on the FAFSA. The federal nee
