Got an interesting email from a reader asking about financial aid stuff this week, but I couldn’t answer his questions for the life of me ;) Some things I’m good at, and others I just have no idea whatsoever. And this is one of those times — which is why he/we need your help! We both need to get schooled (bah dum, ching).
Got any advice, or thoughts, for Kevin?
I’m considering going back to school in a few years, and I’m trying to get ahead of the finances of it all. In a perfect world I’d be able to save up all the tuition and housing up front, but I’d like to get as close as possible. At the very least I’d like to put money away to at least take care of the books and other basic living expenses to minimize the amount of student loans I’ll need.
Now a bunch of different people are telling me not to do this because it will seriously hurt the amount of financial aid I’ll be eligible for. If the financial aid isn’t able to cover a good deal of the tuition, I’ll be unable to attend.
Do you have anyone who might now how that works? Should this affect other decisions in the mean time like opening a college fund for my daughter or an ira for myself or my spouse so that while I’m at school they are still gaining interest? Will the financial aid office really punish me for making wise financial moves in the mean time?
Re-read it again and it’s making me even MORE curious now. I told him he should call up the financial aid office of the school and just flat out ask them (said to maybe to go under a different name if he’s afraid! haha…), but that was the extent of my advice. Now I just really wanna know too if you can get “punished” for saving up for school?! Seems so mad, really… Maybe you just get a different *type* of loan in that case? I have no idea. Any of you had to figure this out before?
Either way, I will say that a) he should do his best to see what kinds of scholarships or grants are available to him, and b) that I back him, and anyone else, up who wants to go back to school. I think it’s SMART as hell, despite the new age theories that it’s not financially worth it any more in this economy. That’s bullocks. While there are always exceptions to the rule, I’m always siding with education being money well spent.
Now teach us, dear readers! Can saving up for college hurt you in the long run?
(Photo by smemon87)