financial aid

i am planning on applying for accelerated nursing programs this year...possibly fall 2011 or spring 2012 program start.

would it be a good idea to put 50% of my paycheck into 401K to lower my income. my current annual salary is about 60K gross. This way i might be able to get more grants and scholarships? or would it be futile since schools would probably look at my 2010 tax return? i also have a some money in brokerage accounts; should i move them out of my accounts as soon as possible?

in a nutshell, what kind of financial aid is out there for ppl like me. Like everyone else , i want to minimize my cost of school, with scholarships, grants, or even loans which can be forgiven under some contract.

BTW i am planning on applying to schools around the NYC area.

I think I'll need to pay attention to this thread, since I am also interested in applying for financial aid.

If I'm not mistaken, there is a cap on how much of your salary you can contribute to a 401K. I believe that your taxable income is then lowered, but your income is still 60K, and you won't qualify for need-based grants and scholarships that someone who makes 30K gross/year will.

Please correct me if I'm wrong.

If the above were true, then it seems logical to conclude that many people would be doing the same thing.

If you start in Fall 2011, then your first year of financial aid will be based on 2010 tax returns. In terms of filling out the FAFSA, it is pretty thorough. You have to declare brokerage accounts and pretty much every other source of investment/funding. Lying on FAFSA is a good way to lose all access to federal aid ... so get ready to be bled dry. You will probably have a very high estimated family contribution/EFC for the first and maybe the second year of school, although sometimes a letter of appeal to your school's financial aid office can offset this. Just be prepared for an uphill battle.

Lastly, I have to say. Your username is extremely unprofessional and almost certainly limits the number of responses to your posts. FYI.

You may not like my response but grants are for those who NEED them. IMO you to be in a position to pay your own way. Now when it comes to scholorships-go for it if they are academic based. Government grants are meant for those whom meet the requirements and not those who try to trick the system. Doing something like you are attempting to do speaks volumes about your integrity-and I am not impressed! One last thing, lying on the FAFSA could land you in some hot water-if you know what I mean. Do the right thing and be thankful you have such a good job and seek scholorships you truthfully qualify for. Just my honest opinion.

With that kind of income, you can cut back your current standard of living to pay for school. Unless you live in California or NYC, of course. See how creative you can get with your finances to pay for it.

I think I'll need to pay attention to this thread, since I am also interested in applying for financial aid.

If I'm not mistaken, there is a cap on how much of your salary you can contribute to a 401K. I believe that your taxable income is then lowered, but your income is still 60K, and you won't qualify for need-based grants and scholarships that someone who makes 30K gross/year will.

Please correct me if I'm wrong.

If the above were true, then it seems logical to conclude that many people would be doing the same thing.

i think you may be right. Google shows 16,500 as 2011 limit for 401k contribution. so even if my employer allows up to 50% contirbution per pay period, it will stop once it reaches the limit..someone confirm if this is right?

When applying for financial aid., dont they look at adjusted gross income? not gross income? so if i can knock off 16500 from 60000, put another 5000 for IRA...my adj usted gross income could be as low as 38500.

Lastly, I have to say. Your username is extremely unprofessional and almost certainly limits the number of responses to your posts. FYI.

sorry, im not understanding ??? my username, the "d" stands for the last letter of my first name, "00" is the 2nd and 3rd digit of my social, then "d00" is repeated because people think I am slightly OCD where i sometimes say things twice twice. "butter" because when i was 13 years old and eating at IHOP, it saved my life because i was choking on a pancake, so serious that i started seeing black circles and my mom shoved some butter down my throat to lubricate it down, so i am forever indebted to butter and make sure i always have it stocked in my fridge. without butter i would not be standing here today

Doing something like you are attempting to do speaks volumes about your integrity-and I am not impressed! One last thing, lying on the FAFSA could land you in some hot water-if you know what I mean.

Of course i didnt advocate doing anything illegal or lying o get financial aid.

putting money in a 401 k or IRA to lower adjusted gross income is not illegal; its financial planning. and it can save you a lot of money.

BTW does financial aid require you list the money you have in Joint bank accounts? or is that not applicable?

yes, it’s your adjusted gross. if you made about the same salary in 2009, to get an idea of what you're expected to pay you could fill out last year's fafsa. you'll get an expected family contribution (efc). in most cases your financial aid award will be your schools cost of attendance (coa) minus your efc. for absns coa usually includes an allowance for cost of living (rent, transportation, books, etc) since working is usually discouraged.

however, note that in most if not all cases if your absn is a second degree you will probably not be eligible for any federal or state grants. you will likely be looking at financing though private loans only. there may be scholarships offered by the individual schools, but these are often merit- and/or diversity-based, not based on financial need.

so the only thing you might gain by playing with your finances is lowering your efc which would increase your eligible loan amount. might not be worth the effort depending on your goal.

d00d:

Some universities will make financial aid awards solely on the EFC figures from the FAFSA. Others will ask for your 1040 tax form and also consider all investments (including retirement) as well as equity in your home.

But as indicated upstream, do not expect any need-based scholarship aid for an ABSN. Federal regulations prevent federal aid to be used for a second Bachelors degree, and many states follow the federal guidelines. Your EFC might be used to determine what sort of student loan you are offered (Perkins, Stafford, or private - each with different interests rates and requirements).

Of course i didnt advocate doing anything illegal or lying o get financial aid.

putting money in a 401 k or IRA to lower adjusted gross income is not illegal; its financial planning. and it can save you a lot of money.

BTW does financial aid require you list the money you have in Joint bank accounts? or is that not applicable?

I never indicated that you were doing something illegal, as I know what you are attempting to do is not illegal. But, what you are doing is trying to trick the system. If you actually make enough money to be able to put 50% into a 401K, then you certainly are not suffering finacially and you appear, by the statements you have made, appear to be in a position to pay your own way. I mean seriously, if you are in a position to potentially put away $30,000 a year, then you would certainly be able to use that same money to pay for your college courses. I could care less about loans, take them out until hell freezes over, but for government grants and scholorships given out based on financial need, you should be very ashamed of yourself for even attempting to obtain these funds. You say it is "financial planning". I most certainly disagree.

Good Luck!!!!!!!!

i am planning on applying for accelerated nursing programs this year...possibly fall 2011 or spring 2012 program start.

would it be a good idea to put 50% of my paycheck into 401K to lower my income. my current annual salary is about 60K gross. This way i might be able to get more grants and scholarships? or would it be futile since schools would probably look at my 2010 tax return? i also have a some money in brokerage accounts; should i move them out of my accounts as soon as possible?

Putting money in your 401k does not change the fact that you earned $60k.

Also, you are trying to trick the system. That is your intent. In no way are you doing this for "financial planning." No reason to lie. Your comments above make your intentions clear. There are people out there who really need these grants in order to go to school. Many people cannot go to school without them. You do not need them. I understand the desire to have them because yes it would be nice to spend as little as possible on school. I personally couldn't think about what you are wanting to do as all I would be able to think about is how I may be taking from someone who needs it more than me. I don't want to be responsible for another person not being able to accomplish a dream.

BTW- My husband and I make a combined income of $35k and we only qualify for a $500 grant each per year.