Did you know that you need to move money out of your child’s name before January 1st of your child’s junior year in order for it to not count against him or her in financial aid calculations? That means time is running out for parents of 11th graders. For details, I recommend the book Paying for College without Going Broke from Princeton Review or, better yet, see a financial consultant who is specifically knowledgeable in the ins and outs of college financial aid.
from Financial Aid – Five Steps
Whatever you are able to save, DON’T save it in the student’s name. This is one of the most common, and most costly, errors families make when saving for college. Colleges will generally consider about a third of student assets to be available for paying college expenses each year. By the end of four years, that means all that ten percent or so will be gone. The exact same amount saved in the parents’ accounts will be “taxed” at about a fifth of the student rate.
