Lesson 6: Scholarships, Grants & Financial Aid
Student Finances
This area of the financial aid process gets a bit murky. While it is noble to work throughout your high school career to save money for college, that money is actually counted in your family finances when you apply for financial aid.
The same holds true for stock holdings in your name. True story: When my first child was applying for college, she applied for financial aid. She had some stocks that her grandfather had given her when she was younger. I was a single mother, raising 3 children, and did not make a ton of money. We were planning on using her stock funds for her college career. When the financial aid packages came back, based on financial need, she was not eligible for as much money as we had hoped, based on her portfolio.
Parents' note: If your child has significant stock holdings, or a trust fund, or a healthy bank account, you need to discuss your finances with a financial planner or accountant early in his/her high school career. You can not wait until junior or senior year to resolve this issue. I am not an accountant, just a mom who learned which pitfalls to avoid with my sons, at my daughter's expense, both literally and figuratively.
Homework: The $ for Dummies book offers a wealth of information about college finances. Considering that a college education can cost more than you paid for your first house these days, you owe it to yourself to read the book from cover to cover and to consult with any experts that you can.
