Is there a more recent forum for this discussion? I think it's a good topic and very relevant this time of year, but I couldn't find a recent thread. Anyway, I wanted to make 2 quick points.
1. Since Stafford tops out at $20,500, I don't think it matters how much finagling you do with your assets on the fafsa4caster (find on fafsa homepage) as long as your school's cost (tuition + books, living, etc.) minus your EFC is greater than $20,500. Ex:
MBA cost = $130,000
EFC from fafsa4caster = $30,470 (based on $80K AGI (adjusted gross income), $40K assets, single)
$130,000 - $30,470 = $99,530 <-- This is how much you'll need in loans, scholarships, work-study, etc.
I believe the way the system works, as longs as the difference between MBA cost and EFC is greater than $20,500, your should be eligible for the full (unsubsidized) Stafford loan amount of $20,500. And since this will be the case for most people, the whole debate about "hiding" money from your savings account and assets becomes moot. More-so because assets are only about 20% of the FAFSA EFC equation; the other 80% is calculated base on your AGI. The rest of the needed money for MBA cost can come from grad PLUS loans, or private loans.
2. If you are concerned with legit ways to reduce your assets for EFC purposes, one option (after paying down undergrad loans, etc.) is to pay ahead a credit card. If, like me, you use your credit card almost exclusively for monthly purchases, you rack up a bill somewhere between $500-$2000 per month. Instead of paying it down month by month, you could pay, say $10K to the card, giving you a large credit, which you could leave on the card as you make purchases for the next few months, not having to worry about making any payments on it, and having effectively (and legitimately) reduced your assets for FAFSA purchases
.
I hope this post finds its way to relevance for some people, either here or on a new thread. Thanks!
*
One note: The above was intended to address Stafford unsubsidized loans. I don't know how much need must be demonstrated to receive subsidized Stafford loans, especially for grad students, but I think they are hard to come by.