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[Dave]

In 1995 I opened an UGMA/UTMA Ohio account for my son, now aged 17 and a
senior at high school, and it is now worth about $20000. And a few years
back, I opened a Coverdell and a 529 which together are worth less than
$10,000. Too late, I am now realizing that the UGMA/UTMA was probably a
mistake because it hurts in the FAFSA calculations. If I had known earlier,
I might have done it differently (but maybe those newer options were not
available 10 years ago?) or I might have tried to spend some of the
UGMA/UTMA on "benefit to the child" There were numerous opportunities over
the years such as field trips, school books etc. Is it too late to spend it
down now? Could I use it to pay for his car insurance?, his gas, his school
expenses? I doubt I can make these add to a total big enough to make a lot
of difference. What about previous year's expenses - is it too late?

[Steve Blank]

UGMA/UTMA accounts legally belong to the student. If you have any
legitimate expenses to draw down that account you will increase his
eligibilty for aid.

When you file the FAFSA they will be asking what assets he has as of
that date. If he still has the $20,000 it will add $7,000 to his EFC.


Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761

[macois]

There are some good tips and articles on:

FAFSA Online

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Jojo
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