DH and I are in the fortunate position of being able to pay for our nephews and nieces college. First one starts next month with the other two each two years later (same family). Parents are middle class in a HCOL area, not entitled to needs-based funding but struggling to figure out how to pay.
First one has received merit based scholarships, but cost will still run $25K/yr. I am assuming best way to handle the finances is to pay the school directly. This keeps the $ out of the parents hands come future FAFSAs. Am hoping I can charge on my cc to get the 2% cash back .
I am also hoping by paying directly to the school we bypass the gifting issue. We give the kids substantial b'day and Xmas money, so will be very close to the max gifting per year for kid 1. Kid 2 has her eye on a private faith-based school so this may come into play with her.
Any thoughts on how to structure this so that the parents may be eligible for some needs based funding when the 2nd kid heads off to college?
First one has received merit based scholarships, but cost will still run $25K/yr. I am assuming best way to handle the finances is to pay the school directly. This keeps the $ out of the parents hands come future FAFSAs. Am hoping I can charge on my cc to get the 2% cash back .
I am also hoping by paying directly to the school we bypass the gifting issue. We give the kids substantial b'day and Xmas money, so will be very close to the max gifting per year for kid 1. Kid 2 has her eye on a private faith-based school so this may come into play with her.
Any thoughts on how to structure this so that the parents may be eligible for some needs based funding when the 2nd kid heads off to college?