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Received an Inheritance? Will It Affect Your Student’s Financial Aid?

March 30, 2021/in Children, College Planning, Financial Planning /by admin

Each year, around 86 percent of college students obtain some form of financial aid.1 In order to receive financial aid from the government, all students must fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA. The FAFSA determines the financial need of a student based on factors such as family income and the prior tax year’s income.

With these factors in mind, it’s important to note that large windfalls like an inheritance could affect the amount of financial aid a student receives. If you’re worried about how an inheritance could affect your college-age child or grandchild, here’s what you need to know.

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