From: "jIM" 
Newsgroups: misc.invest.financial-plan
Subject: Re: ROTH IRA for College Purposes VS 401K
Date: 7 Jul 2005 19:40:18 GMT
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my understanding is money in child's name counts 4 to 1 more than money
saved in parents name for Federal aid.  If child is expecting aid and
there are assetts, my understanding is that it's best for parent to own
the assetts.  My understanding further is the 529 plans are counted on
the child's name, not the parents.

and the loans were dealing with are subsidized vs unsubsidized.  The
interests rates on my loans were the same.  Difference was accrued
interest at graduation vs not accrued interest at graduation (un
subsized require you to pay interest only when in school, or defer
interest payments even though they are due- meaning 3 years later at
graduation the $3000 loan I took out had grown because of accrued
interest while in school).

If you have more recent information than this (my information is 5-10
years old)

another disadvantage is if you consolidate a subsized with an
unsubsized loan, the whole loan becomes unsubsidized, which has
ramifications if you lose your job and want the government to assume
interest payments.

but overall the loan amounts I received were the MAXIMUM allowed.  I
received the maximum subsidezed (some years only $600), then the rest
was un subsidized.  Poorer students got it all subsidized, richer
students were all unsubsidized and I was in the middle (typical me).

several years ago smart money magazine had an article about the student
aid game to play and gave great hints, tips and tricks for the aid
form.  I learned much of what was posted here through individual
experience and that article.