Parents Using Retirement Savings for College Costs

My understanding is that parents' retirement accounts are not counted as accessible resources in financial aid calculations. That means that for parents with some, but not huge, resources, the incentives are to emphasize retirement savings over college savings -- even if the intent is to assist their children with college tuition when that time comes. Savvy parents, like the relatively high income ones you note in the article, will have noticed that you can save tax free for both in the same place, then withdraw when tuition time comes. Is it surprising then that some fraction of people do this? There may be worrisome factors at work here, but you should also note this element of the situation before writing a panic-inciting article.....

Argus Panoptes of NY 11:41AM May 29, 2012