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Post by MichyM on Oct 29, 2014 23:18:45 GMT
My son is 24 and lives on his own across the country and has for over 2 1/2 years. He's started looking at grad schools. His major is in the arts and requires auditioning as well as the standard application process.
Several years ago his grandmother passed away and left him a sizable amount of money. It is invested and managed by a professional. My son has decided not to touch it until retirement. The line of work he's in doesn't provide much financial stability, nor any type of organized retirement funds, so this makes sense for him.
My question is, will this fund (in his name) affect financial aid, specifically if he's able to get student loans. It is not a trust, it is just a regular investment account. Or will it be expected that he deplete those funds first before qualifying for student loans? If it matters, he's looking at schools in NY and CT.
Sorry if this sounds like a dumb question, but he was able to complete his undergrad degree without any of us having to take out any loans. Thanks.
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Nicole in TX
Pearl Clutcher
Posts: 2,951 
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Post by Nicole in TX on Oct 29, 2014 23:24:39 GMT
I wouldn't think it would affect his ability to get a loan; it might actually help it because it could be viewed as collateral.
I would think it would affect his ability to get need based grants.
Good for him for being so young and deciding to save it.
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Post by MichyM on Oct 30, 2014 0:00:40 GMT
Thank you Nicole, I know it will affect need based aid. Thankfully most scholarships in his area of study are merit and talent based which helped us a lot with undergrad. I'm in the dark about grad school aid and my son says he's got it handled. But I'm not sure he understands how it all works (nor do I obviously).
As far as him deciding to save it all, he met with my financial adviser after he came into the inheritance. The FA showed him how much the inheritance would be worth (approximately) if it was invested for the next 45 years. That was an eye-opener for my son, and made it easy for him to leave it be and pretty much forget about it. I highly recommend this approach with anyone (especially younger adults) who have some extra $$$ to possibly set aside.
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Post by freecharlie on Oct 30, 2014 0:09:59 GMT
It will affect his grants and might affect the amount or type of loan offered. He won't know until he applies for the loans.
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Deleted
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Aug 18, 2025 20:12:05 GMT
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Post by Deleted on Oct 30, 2014 0:14:10 GMT
Grad students aren't usually eligible for anything but loans or merit scholarships. Most people have used up their grant eligibility getting their bachelor degree. So it shouldn't hurt him.
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Post by ktdoesntscrap on Oct 30, 2014 0:26:49 GMT
I assume he is getting an MFA. I know that it can be very different, perhaps because there is no PHD in most art fields? But as I understand it most students getting MFA's get a lot of merit based aid, and often teach to make a decent salary. My niece who just got her MFA in Theatre Set Design, made more money while she was doing her MFA then in her first job. She has now done a few shows on Broadway as a assistant set designer and a lot of major shows as the head set designer in other cities... so I think she is on her way to a successful career.
I would imagine if you son says he's got it. He does.
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Deleted
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Aug 18, 2025 20:12:05 GMT
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Post by Deleted on Oct 30, 2014 1:34:50 GMT
I just finished with my Masters degree in May. When I filled out the FASA form for loans I had to connect my tax returns with it. I wasn't working at the time but dh was and our taxes are filed jointly. We own a home. I have money in an IRA. None of it mattered for the loan. I was able to borrow as much or as little as I needed. My guess is that the money he has saved will not have an effect on loans.
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Post by MichyM on Oct 30, 2014 4:12:04 GMT
Thank you all. He totally had his undergrad degree application and audition process covered. All I had to do (truly) was travel with him to his auditions, You have pretty much convinced me to trust him again regarding his graduate degree.
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Post by SabrinaM on Oct 30, 2014 5:24:57 GMT
Grad students aren't usually eligible for anything but loans or merit scholarships. Most people have used up their grant eligibility getting their bachelor degree. So it shouldn't hurt him. This was our experience as well. |
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Time to get off the internet!
