* Keep a Close Eye on Liquid Assets.
This generally means cash, assets in non-retirement accounts, income and second homes. All of these items are counted as resources available for college.
So if you’re planning to start withdrawing money from retirement accounts or thinking of buying a vacation home, you might want to hold off.
Also be careful with grandparents who contribute. That income might show up as student assets, which are counted most prominently in aid formulas.
And if you’re investing in a college savings account, choose a 529 account over a trust called an UGMA or UTMA. The trusts are assessed four times higher in aid formulas compared to 529 plans.