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Why Families May Want To Consider Asset Repositioning Strategies To Reduce College Costs

asset repositioning strategies

This article is slated to be updated with the latest FAFSA, Scholarship, and Financial Information. For more updated information, please refer to our 2023 and 2024 articles.

About 20% of middle-income families will qualify for need-based aid that is higher than their merit scholarship.   It often makes sense for these families to consider asset repositioning strategies to reduce their EFC so they are able to capture the additional gift aid that may be available to them. 

Upper middle-income families, especially those that will have more than one child in college at the same time, can also benefit from this strategy—especially if their student is headed to an expensive, highly selective private university.  Colleges using the Institutional Methodology will still be giving these families a reduction in their EFC during their overlapping years when the new FAFSA rules go into effect. 

Before you make a final decision, however, there are still other reasons that must be taken into account:   

  • The first reason:  If your student loses their merit scholarship after their freshman year, you may still qualify for a grant based on your family’s demonstrated financial need.   
  • The second reason:  If you have a change in financial circumstances after your child is already in college, you can still appeal for additional financial aid.  However, if you have not repositioned your assets, they may risk losing that opportunity. 
  • The third reason:  If any of your children end up attending a college that uses the Institutional Methodology and your assets are not repositioned, you may lose an opportunity to get additional need-based aid. 

Other reasons to reposition assets include the need to rebalance your retirement portfolio to simply not wishing to reveal your net worth to the colleges.  By working with a qualified fiduciary, you can work through the pros and cons of asset repositioning which will always vary from family to family.

Billie Jo Weis

After receiving her BA in Accounting from San Jose State University and quickly attaining her CPA license, Billie Jo gained over 20 years of experience in accounting and finance at a variety of companies including Symantec Corp, Thomas Weisel Partners (a San Francisco investment firm), several Silicon Valley startups and at a Certified Public Accounting firm serving high net worth individuals with their taxes.

She has assisted hundreds of college-bound families with strategies on how to pay the least amount for college and she is also the Head of the Appeals Team.

Billie Jo Weis is a mother of three high school boys. With a passion for family success, she has devoted the past 15 years to her boys' athletic, social and academic lives, including volunteer work at her children’s schools with such programs as Junior Achievement.

Billie Jo is driven and passionate about helping families with financial strategies on how to find the most cost-efficient options to pay for college. With three teenagers in high school, Billie Jo knows first-hand the challenges and concerns of preparing for the cost of college.

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