Expert: Les Thomas - 12/4/2011

Question
Hi Les.  I think we have enough money saved in a 529 to cover our daughter's undergraduate study at a state university.  She is a high school senior and well graduate in Spring 2012.  Is there any advantage for her to apply for financial aid?  Or should we just use the 529 since we have saved all these years?  I assume we should use the 529.....Am I missing something?

Answer
Bill,

I am smiling as I write this... but it's not because I think it's a funny question... it's because I know how long it is going to take to answer it properly... and in a way that is easier to understand.  Where do I begin?

The most direct way for me to answer would be this... you've done what all of us parents have heard all our lives, and you've saved for your students college education.  You should be commended for that... because many parents don't.  However, just because you have the money saved - does not necessarily mean that you should ignore the Financial Aid that your daughter may qualify for and could receive.  There are financial advantages I could go into with you, but I'd have to first know a bit more information.

I'd prefer to discuss this with you privately, since a lengthy and understandable explanation may deal with the College she has selected, their participation in Financial Aid, the yearly increase in cost, the amount of Financial Aid possible to receive.  It may also have to do with your personal financial situation.  If it would be all right with you... I would refer you to our website at www.collegefundingconnection.org - where you will find my personal contact information including phone number.

If you would like a more in-depth explanation that would save me about 6 pages of typing... please give me a call, and we can go over the advantages.

Thanks,

Les Thomas