[Fredslist] Financial Aid for college question

[Ellin Yassky]

Good morning, Gotham.  I am in need of some sage advice and am trusting that I can put this information out to my fellow Gothamites.. I'm selling my house in Fairfield, CT, but am unsure about the next step. Can anyone give me solid advice (not guesstimations)?

I have one child in college and another who is currently a junior in high school. I'm the sole parent. There is no other income, other than what I bring in. Here's the question:

Do FAFSA or the college financial aid offices consider the (small) profit that I might gain from the sale as "theirs," or as touchable assets and therefore reduce the usual scholarship my son (and eventually daughter) gets? 


I'm getting conflicting advice: 

A. Sell and buy a much smaller house (reinvesting all the money) so the colleges don't take the profits, thereby zeroing out anything I would make from the sale and need to buy another house or live off of.
B.  Sell and rent an apartment or home and use the profits from the sale to pay for the rent. Don't worry about the colleges.

Knowing which way to go will make a big difference on where we end up after we sell. I know there are pros and cons as well as different tax implications to each side. I am looking to educate myself so I know which way to go.


And if anyone is looking for a really fabulous home in Fairfield CT (the 9th 
best town to live in the US!!!), please let me know. I wouldn't mind 
saving the agent commission. (4 bedrooms, 2 1/2 baths, new roof, new central A/C, and furnace).  Excellent location, fabulous neighborhood.

Thank you for sharing your excellent knowledge with me! I am only too happy to return the favor!!

All best,

Ellin  

 
Ellin Yassky, Ph.D.
Medici Editorial Services, LLC
39 Woodbine Lane
Fairfield, Connecticut 06825
203.581.0395
Ellin at MediciEditorial.com
www.MediciEditorial.com
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