Experience with college 529’s?

[Amps 13]

My daughter is going to be a senior next year so we are in full swing with college tours and all. We are very lucky that both sides of her grandparents started college 529’s for her that will help pay 2-3 years of her schooling, depending on where she goes. My question is that I have read and asked about what is the best way to implement these 529’s so that is does not effect any scholarships she may get or anything like this but hear differing things and I am confused on what I should do.
Anyone know the best way to go about this?

 

[ProfMagoo(ret)]

I can't be much help with specifics, but my understanding is that 529 plans are state-specific: so you would need to consult with someone knowledgeable with your home state's program. Good luck, though.

 

[CZfool68]

My daughter is going to be a senior next year so we are in full swing with college tours and all. We are very lucky that both sides of her grandparents started college 529’s for her that will help pay 2-3 years of her schooling, depending on where she goes. My question is that I have read and asked about what is the best way to implement these 529’s so that is does not effect any scholarships she may get or anything like this but hear differing things and I am confused on what I should do.
Anyone know the best way to go about this?

My wife has been handling most of this for us. What we have learned is nobody really know anything. Right now we are thinking we can take student loans that don’t get paid on until after she graduates, and then use the 529 money to pay them off. That way the 529 money gets 4 more years to grow or earn interest. Although most of it is now in very low interest earning places. It has been shifting from aggressive to conservative funds for the last bunch of years. The biggest thing I have learned is that it is all a series of scams and crap shows that the University/Gov’t complex has set up. They want everyone to take cheap loans for huge amounts and become indebted for basket weaving degrees. Our plan is to get her out with some brains left and zero debt. It ain’t easy.

 

[CZfool68]

I can't be much help with specifics, but my understanding is that 529 plans are state-specific: so you would need to consult with someone knowledgeable with your home state's program. Good luck, though.

There is no one knowledgable. We met with a local ‘expert’ that just gave us web site addresses to hunt down scholarships. Useless government employee collecting a check.

 

[Amps 13]

There is no one knowledgable. We met with a local ‘expert’ that just gave us web site addresses to hunt down scholarships. Useless government employee collecting a check.

Seems to be what we are seeing too. Crazy!

 

[CZfool68]

Seems to be what we are seeing too. Crazy!

It is basically all a series of scams because everyone is brainwashed people can’t succeed without an expensive college education. IMO all kid sand degrees are not equal. Some kids are better off with trades school, some with Community College and some with College. And some with a combination. It just depends on the kid and their path. But people are shamed into spending huge amounts on worthless college degrees.

 

[Alfred]

As to the OP question, it depends. Heres a link with some good info:
https://www.washingtonpost.com/busi...fects-need-based-financial-aid/?noredirect=on

When we were going through the process I found it amusing that a billionaire with a reportable taxable income below a certain level for the years in question could could probably qualify for aid, while a single parent making 60k on W2s would barely see anything. Its whack. Smart money does community college for cheap to bang out the must haves, then transfers to the big U for majors.

Although as guys are saying here, these days Id push for a trade school or a career choice that cant be outsourced or automated.

 

[Amps 13]

As to the OP question, it depends. Heres a link with some good info:
https://www.washingtonpost.com/busi...fects-need-based-financial-aid/?noredirect=on

When we were going through the process I found it amusing that a billionaire with a reportable taxable income below a certain level for the years in question could could probably qualify for aid, while a single parent making 60k on W2s would barely see anything. Its whack. Smart money does community college for cheap to bang out the must haves, then transfers to the big U for majors.

Although as guys are saying here, these days Id push for a trade school or a career choice that cant be outsourced or automated.

Thank you for link. My daughter wants to do physical therapy so trade school is prob out. She wants to go to chapel hill but she might be on the bubble to make it in. I won’t be sad if she doesn’t make it though since I don’t want her coming back a raving lib but I also want her to make her own decisions up to a point.

 

[Amps 13]

As to the OP question, it depends. Heres a link with some good info:
https://www.washingtonpost.com/busi...fects-need-based-financial-aid/?noredirect=on

When we were going through the process I found it amusing that a billionaire with a reportable taxable income below a certain level for the years in question could could probably qualify for aid, while a single parent making 60k on W2s would barely see anything. Its whack. Smart money does community college for cheap to bang out the must haves, then transfers to the big U for majors.

Although as guys are saying here, these days Id push for a trade school or a career choice that cant be outsourced or automated.

That link was extremely helpful and helps a lot. I appreciate that!

 

[ProfMagoo(ret)]

Thank you for link. My daughter wants to do physical therapy so trade school is prob out. She wants to go to chapel hill but she might be on the bubble to make it in. I won’t be sad if she doesn’t make it though since I don’t want her coming back a raving lib but I also want her to make her own decisions up to a point.

My son graduated with a STEM degree from CH last year and came out reasonably sane. Of course, he was in AROTC so that might have helped somewhat. I mention this because "Medical Services" and ROTC might make a good match were your daughter so inclined to consider it.

 

[chiefjason]

You will have to do the FAFSA ? and get asked a ga ba zillion questions. If the money is not in your or her name it may not come up. But they are thorough. If it does not come up, you will be in good shape. We moved my kids into my wife name because her parents can be hard to deal with sometimes.

Scholarships really depend on the quality of person you are talking too. Some of them run by zip code and address, for more local stuff. WCU screwed our county up because of our physical address. The county line splits our town. The counselor went in manually and searched our county for scholarships and found one for our daughter. ASU couldn't be bothered to even completer her paperwork and constantly required us to revise or send in more.

If she does get scholarships you can remove the amount of the scholarship from most 529's at the same rate. You can then use that for other expenses. All depends on how much you get and how much is in the account.

 

[chiefjason]

Right now we are thinking we can take student loans that don’t get paid on until after she graduates, and then use the 529 money to pay them off.

Be very carful with this and check, re check, triple check, and get it in writing. Loans

are not a qualified withdrawal on a 529. Can you withdraw it? Probably. Will you have to claim that money on your taxes if you use it on a loan? Most likely.

We are taking out the low interest loans that don't accrue until graduation, then using the 529 to cover what the loans and scholarships do not cover.

My daughter is going to be a senior next year so we are in full swing with college tours and all. We are very lucky that both sides of her grandparents started college 529’s for her that will help pay 2-3 years of her schooling, depending on where she goes. My question is that I have read and asked about what is the best way to implement these 529’s so that is does not effect any scholarships she may get or anything like this but hear differing things and I am confused on what I should do.
Anyone know the best way to go about this?

OK, I mentioned this to my wife who is doing most of the leg work. The G parents 529 does not get reported on the FAFSA. But anything taken out of their 529 gets counted as income to the student the next school year. If the 529 is in the parents name it is already a parental asset and does not count against the FAFSA as income the next year. If you have questions I'll put her on the keyboard next time. She was neck deep in this for months and her dad went through his tax guy and money manager to set this up and was told to ultimately put it in her name. FWIW, they know the angles better than you do and to get around them you would have to break the law.