Grad School Aid Process and Retirement Funds

Hello,

I am planning to go to grad school in about a year, and have been working for two years since graduating from college, so I have some money saved in a 401k, and also some money saved in a Roth IRA. In the financial aid process for grad school, will the money I have saved for retirement be viewed as available for paying my tuition? I would like to get as much financial aid as possible (of course) and am wondering about the best ways to preserve the savings I already have. Are there certain types of accounts that will not be counted in my available funds? Any advice for saving for grad school is much appreciated.

Thanks!

Retirement accounts are generally not counted as sources of education funds - especially for the Federal Method (state schools). Institutional Method (private schools) may include these funds, depending upon the institution.

Now, if you use Roth IRA funds to help pay for school, then you'll have to include that amount as income for the following year, so it's usually best to save that option for your senior year if you can...