To increase your family’s eligibility for college aid, get your finances in order before filling out the financial forms. Spend cash (especially cash in the child’s name) for the student’s computer or even a car. Use any remaining assets held by the child to pay for the first year or two of college, which will help when renewing financial aid applications.
Ask relatives who want to give cash to students to wait until after college graduation, when the money can pay down loans. You should use your own cash to pay down credit card bills, car loans, and other debt. Purchase big-ticket items such as furniture you’re planning to buy.
If you’re planning to sell assets, do so two years before college so the capital gains won’t show up as income on the first financial aid form. The less cash and the lower income you report, the greater your financial aid may be.
