How Saving for College Might Impact Your Child’s Financial Aid Package
The closer your child comes to college, the likelier it is that you're thinking about how to help pay for it. While the specifics of financial aid might not yet be as clear as you might want, you probably have a general sense of what that aid entails, which leads to this common question: “Will saving for college hurt my child's chances of receiving financial aid?"
It's true that most aid students receive is need-based, which means that a family expressing a greater need for assistance will typically receive more than a family with more readily available assets. But that doesn't mean that you shouldn't bother saving at all, or that you're guaranteed to get more financial aid if you don't. Here are a few reasons why you're better off saving for college, along with some considerations for the early stages of financial planning.