They aren't included for the means test, but then they also aren't available to pay tuition. Even among our kids, you can't count on your kid getting into one of the top 5 or so schools that have GREAT financial aid. At almost all the rest your kid is going to have loans as part of their FA package (so they aren't just "giving" you money). Also, income counts for a whole lot more than assets -- so as mentioned above, for the calendar year before your kiddo applies (ie, 2013 tax year for 2014 fall attendance), it is a good year to show low income. But you have to keep showing low income for the next few years, or you lose the need based aid.
If there are any young parents reading, we started saving by putting our pre-tax day care "refunds" right into college savings. Even after divorce with minimal help from my ex, I have been able to put two kids through private colleges because we saved early and put in quite a bit. If you have the discipline, it is a lot safer plan than counting on Harvard or Stanford admission.
Last edited by intparent; 01/17/14 07:33 PM.
