Will son's college savings hurt his financial aid chances?
What Harry says: I understand your concern. As his money, they will look for a 20 percent contribution to his college costs. As your money, it will only be hit for less than 6 percent. Bear in mind, also, that many schools will ignore certain of your assets in their determination. Your primary residence and retirement accounts, including IRAs, are usually on that list.
As to transferring the money: The die is already cast. I would urge you not to go that route even though the likelihood of your getting caught is small. Such a move could easily lead to a denial of aid and other problems. Perhaps the worst of these is a revocation of one or more letters of acceptance. One of the very few good things to come out of our recession is the increase in the number of colleges offering grants instead of loans. Look into these even if they are not among those he's presently considering.
Email Harry Gross at harrygrossDN@gmail.com, or
Harry urges all his readers to give blood. Contact the American Red Cross at 800-Red Cross.