Asset Protection Allowance

Asset Protection Allowance
This is the amount of money that the colleges will not hold against you in their computations of how much financial aid they will offer.

Sample
Let’s say you have already filled out the FAFSA (Free Application for Federal Student Aid).  The Department of Education looks at the financial information you entered about yourself, and decided what amount of your assets are necessary for emergencies, which is the amount the colleges cannot count against you in their final calculations.

Your age
It depends on the age of the older adult in the household. So, if you’re 48 years-old and married, you have $50,100 in assets that are off the table – protected from the computations (if single, $19,600).

Winner
If you’re a 54-year-old, $58,400 is protected; you’re a golden-oldie.

Private colleges
Many of the very expensive private schools (apologies for the redundancy) have the audacity to ask what’s in your retirement accounts. Recently an Ivy League school asked one of my clients for information about his retirement funds. He called me in a panic and suggested that if he didn’t answer the college’s inquiry, his son wouldn’t be accepted. I advised the client to tell the college it’s none of their business, that his retirement is a sacred trust to himself and to no one else. I suggested the college was pushing him, and that he had to push back to get any respect. Result: son is offered a $17,000 scholarship and then decides to go elsewhere!

Warning
When a college calls you by phone, and you know it’s in response to a recent written inquiry about your financial aid, NEVER answer. This assumes you have caller ID. If you don’t, get it. Thousands of dollars are at stake. If you answer, what will you say when the caller says, “We have no more money.” You could say, “Neither do I!” But now it’s a stand-off. Make the college email you their response so you can have time to think about how you will respond. Click here for the advantage of caller ID.
——————–
Go here for the calculation tables. Go here to get free videos for the next 10 weeks.

Advertisements

Tags: , , , , ,

One Response to “Asset Protection Allowance”

  1. Neil Says:

    Interesting read

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: