COLLEGE FINANCIAL AID
One focus of our practice is the LLC formation in the context of parents with children applying for college financial aid. For clients who own rental real estate or who own and operate a family owned business, the placement of these type assets in a properly structured business entity such as an LLC, may result in saving thousands of dollars in college tuition.
IS COLLEGE FINANCIAL AID FOR EVERYONE INCLUDING THE WEALTHY
Just about. Unless the student's family are Rockefellers, college aid is available to anyone who can establish the requisite "need". We believe a student should apply even if the student thinks his/her parents are too wealthy to qualify. By employing financial planning techniques determined by the student's college aid adviser, a student may be surprised to learn that he/ she is able to establish "need" for purposes of receiving financial aid.
HOW IS NEED DETERMINED?
The US Department of Education calculates financial need using a formula established by Congress. The formulas are applied to the information which the student and parents report on the Free Application for Student Aid (FAFSA). By applying the formula to your financial situation, your expected family contribution (EFC) is determined. The EFC is the student's ability to absorb a portion of the cost of the college tuition and related costs. The lower your EFC, the greater will be your financial aid package