Rental property as LLC and its affect on college financial aid

[Steve Tom]

Hello everyone.

My son is a junior in HS.  I tried a few cost calculator  from several universities he is interested in, and saw that with a rental property the amount of aid is drastically lower.

A friend told me about turning the rental property into a LLC, and this will be exempt from CSS and FAFAS. Is that true? If so wouldn't everyone be doing this to maximize the aid for their kids?

This sounds too good to be true. Anyone has experience with this?

TIA.

[Chris Seveney]

@Steve Tom

A LLC is pass through entity for Tax purposes and you have to list your assets on federal forms. Talk to your cpa but I don't believe it makes a difference