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| Excerpts
from: Loans and Grants from Uncle Sam: Am I Eligible and for How Much? By Anna Leider 16th Edition Please Note: This Book is updated every September. Here's the
Formula: Student Assets Dependent student assets are taxed at a much higher rate than parental assets (20% versus 5.6%). If a family can make a legitimate choice between leaving junior's assets in junior's own bank account or maintaining them as part of the parental account, the family should opt for the parental account. Here is why: The Lay family has an Expected Family Contribution of $10,000. State U. costs $11,000, making them eligible for a $1,000 loan. Daughter Freida keeps $4,000 in a bank account in her name. That sum, all by itself, chips in $800 of the family's EFC. The Lays had read Loans and Grants. They agreed that by closing out Freida's account (with her approval of course) and adding the money to the family account, the money would chip in only $224 to the EFC. It would contribute none, in fact, if the Lay family assets remain under about $45,000. This little change dropped the EFC to $9,424. The family became eligible for a $1,600 subsidized loan. Look
how much you learned in one paragraph, imagine how much
the whole book could save you!
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