How can I protect my assets from financial aid?

Question

I recently graduated from undergrad and have been working for 2 years now. I am looking at applying to some MBA programs and the price of tuition is unbelievable! I have read that a lot of these schools offer need based financial aid based on your assets (savings, 401(k), IRA, real estate equity, etc.) I do not come from a wealthy family but I have worked very hard my whole life with the goal of being able to buy a house. I have been very responsible by spending only what I absolutely needed and as a result now have about $75,000 in assets. I am in good financial condition now but I fear that the schools won't give me any aid. This is very unfair because it's not like I come from a rich family or have a high paying job. Instead of being irresponsible with my money I have saved. The average family has thousands in credit card debt, so obviously most people haven't done this. Is there a type of trust or something I can transfer money into in order to protect it?

Answer 1

Your options for grad school financial aid are very limited.  99.9 % of the time, grad students have to take out loans to pay all or the majority of thier tution and fees. But don't feel bad.  This is the case regardless of how much cash you have in the bank or how much you earn.

My other thought, (and perfectly legal way to NOT to report your 75K is to spend it.  A car, or actually a house would prob be the better option.  The only problem with that is, you STILL wouldn't qualify for need based grants.  Because 1. you have a degree already, and 2. If you make enough money to save 75K you aren't low income anyway.  Loans it is.

Answer 2

The aid is there for students who actually need it and if you have 75k tucked away I'm afraid you don't need it.  I'm not judging, I'm in a similar circumstance.  

My only advise to you is to tread carefully in what ever you do.  Any attempts to hide your assets and then apply for aid will be considered fraud since the applications require that you disclose your assets.  If you get caught you will be liable to both criminal/civil penalties as well as academic sanction which could require you to retake courses, pay back the aid or pay a fine to get your diploma released.  

Also, keep in mind that any aid has to be declared at tax time and you may get caught at that period of time as well.  

It all seems hardly worth the risk.  If your studies are that important then they should be leading towards a good job that will allow you to bounce back right quick from any expense in getting the degree.

Answer 3

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://is.gd/7il