Latest news with #CSSProfile
Epoch Times
15-05-2025
- Business
- Epoch Times
Does a 529 Plan Affect Financial Aid?
A 529 college savings plan can be a powerful tool when saving for future education expenses because investments in the plan can increase tax-free, but many savers don't take full advantage of all the benefits that 529 plans have to offer. One common deterrent to investing through a 529 plan is the concern that assets in a 529 account will reduce financial aid eligibility. While it's true that 529 assets have an impact on financial aid, the effect is likely smaller than you think. Do 529 Plans Affect Financial Aid? The short answer is yes. An increase in the means to fund higher education naturally means the beneficiary is eligible for less need-based aid. However, assets in a 529 plan have a lesser impact on financial aid packages than income does. A student's federal financial aid is based on an estimate of what a family can contribute annually from their income and assets. Income is the largest portion of this measurement of a student's ability to pay for college, which is represented by the Student Aid Index, or SAI, on the Free Application for Federal Student Aid, or FAFSA. The SAI replaced the expected family contribution, which was previously used on the application. Typically, the SAI calculation expects parents to use 25 percent to 35 percent of their adjusted available income to cover college costs, though that number can go as high as 47 percent. Parental contribution from assets, including 529 account balances, is assessed at a much lower maximum of 5.64 percent. So, if a family has a 529 account with $10,000, this raises the expected family contribution by at most $564 and reduces the federal aid package by the same amount. A 529 Plan's Impact Depends on Who Owns the Account The impact of 529 assets on a beneficiary's financial aid package depends on who owns the account. As outlined above, if the plan is owned by the beneficiary's parent, then 5.64 percent of the account's value is considered in the SAI, which determines a student's financial aid eligibility on the FAFSA. On the other hand, if the plan is owned by the student, then up to 20 percent of the account value may be considered in calculating financial aid eligibility. With changes to the Siblings' 529 Assets Don't Count for Federal Financial Aid After the FAFSA Simplification Act, assets in 529 accounts are counted as parental assets only for the beneficiary of the account. That means, if you have 529 accounts set up for your other children, the assets in those accounts are no longer counted toward the expected family contribution. As mentioned above, accounts owned by grandparents or other relatives will also be excluded from determining federal financial aid eligibility. Financial Aid Eligibility Differs Between FAFSA and CSS Profile There are also schools that use the College Scholarship Service, or CSS, Profile (primarily private schools) to calculate their financial aid packages. The CSS Profile's formula to calculate aid differs from FAFSA's. For instance, the CSS Profile asks for all 529 accounts owned by the beneficiary's parents, whereas the FAFSA only counts 529 accounts for which the student is the beneficiary. Moreover, the CSS Profile is customized by the institution, so each school can have its own formula to calculate its aid packages. While each school that uses CSS Profile information applies its own standards, this Related Stories 8/28/2023 11/18/2024 By Hyunmin Kim, Margaret Giles of Morningstar The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
Bloomberg
19-03-2025
- General
- Bloomberg
Want to Go to College? Pay the College Board
By If you're a high school student planning to apply to a top-ranked college or university, there are some things you'll need. Make sure to take the PSAT ($18) as early as possible in your junior year—or, ideally, as a sophomore, which will give you more time to study for the real thing. Take the SAT at least twice ($68 each) to maximize your score. Most important, you'll want to take as many Advanced Placement courses as you can possibly fit into your schedule to show admissions officers that you're challenging yourself, then take the end-of-year tests ($99 each, or $147 for AP Seminar or AP Research) to prove you're already excelling at the college level. Signing up for eight or 10 AP tests over four years isn't uncommon for students applying to top-tier universities, and you'll need to stand out in an age of plummeting acceptance rates. If you need money for college, many schools will ask you to submit the CSS Profile ($25 for the first college-specific application, $16 for each subsequent one). Can't afford all those tests? Not to worry! Fee waivers are available for all of them, often funded by your state, town or school district, requiring more than $100 million in public funds each year. Your high school needs you to sit for the tests, too: It must report to the federal government how many students take accelerated coursework, and it can unlock additional funds if the numbers are high enough. Your school's spot in the U.S. News & World Report rankings also depends on how many students take AP courses and pass the exams. Finally, a number of states now require the SAT for graduation, and several public university systems are required to accept high AP scores for college credit. Thirty-five percent of all high school students take at least one AP test, and the share rises every year. You don't want to be left behind.
Associated Press
31-01-2025
- Business
- Associated Press
Navigating the Financial Aid Process: How InAmerica Education Helps Families Secure College Funding
The U.S. financial aid process can be overwhelming; however, InAmerica's mentorship alleviates stress, empowering students to make informed college decisions. NEW YORK, NY, UNITED STATES, January 31, 2025 / / -- Understanding the U.S. financial aid process can be overwhelming for many students and families, especially those unfamiliar with the complexities of federal aid, institutional grants, and scholarship opportunities. The Free Application for Federal Student Aid (FAFSA), the CSS Profile, and various merit-based awards all play a role in determining a student's financial aid package. However, many families struggle to maximize their financial aid potential with rapidly changing policies and strict deadlines. That's where InAmerica Education steps in. As a leading educational consulting firm, InAmerica provides expert guidance to help families navigate the financial aid process confidently and easily. Through one-on-one mentorship, they ensure that families understand the full range of funding options available, avoid common pitfalls, and strategically position themselves for the best financial aid outcomes. U.S. undergraduate financial aid is primarily categorized into: - Need-Based Aid: Determined by a family's financial situation, including federal grants, state aid, and university-based aid. - Merit-Based Aid: Awarded based on academic, athletic, or artistic achievements. - Work-Study Programs: Opportunities for students to earn money while enrolled in college. - Federal & Private Loans: Borrowed funds that require repayment, often with interest. Applying for aid starts with completing the FAFSA, which determines eligibility for federal assistance and many institutional aid programs. Additionally, some private universities require the CSS Profile for more detailed financial assessments. Each school has different deadlines and requirements, making early preparation essential. Navigating these financial aid applications can be stressful, but with InAmerica's experienced mentors, students and parents can feel confident that they are making informed financial decisions. By securing optimal financial aid packages, families can focus on what truly matters—finding the best educational fit for their child's future. Don't let financial aid confusion stand in the way of a world-class education. Contact InAmerica Education today for expert support in navigating the financial aid process and securing the best possible funding for your student's college journey. InAmerica International Legal Disclaimer:
