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If you are about to send your kids to college, the cost will probably be more than a little shocking. One way to maximize your financial aid if you have substantial assets is to dramatically reduce your debt in the years leading up to college. A maximum of 5.64% of parental assets are expected as a contribution to education, so reducing those assets by paying down debt can make a huge difference. Normally, you have 3 major categories of debt: credit cards, auto loans, and a mortgage on your home. The first two categories should be paid off before the base year prior to college (to be safe, two years before they start). No credit is given for credit cards or auto loans so paying these down to zero with your available cash will increase your eligibility. For your home, if you have substantial assets whereby you can pay off your mortgage and still have additional cash, it likely makes sense to eliminate the debt. There's no better feeling than burning your mortgage anyway. Setup a line of credit ahead of time if you need the cash flexibility once they enter school. From your debt free position, you will maximize your financial aid package and still be able to shoulder the burden of higher education.
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College: Make Sure your Kids Pay Their Share
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