text: how do i avoid being penalized for earned income while starting college? i own a home next to new orleans that was not flooded by hurricane katrina and i want to sell it and move to maryland to attend college.  i intend to rent a room from a friend for cheap until i graduate.  meanwhile, i might be earning around 50k from this sale before taxes and fees.  how can i still qualify for financial aid with this lump sum?  should i put it away in a cd or if i decided to buy more property where hurricanes do not exist and rent it out to someone cheap...without making a big stink about my not residing in that home so the gov. may not notice?  i intend to not work at all through my entire college career because if i let myself work i will flunk out!  i am an easily distracted student but i want to do this right this time!  please help! if you have already received your financial aid package, don't worry about anything.  just act like nothing happened. and, if you have not received your financial aid package yet, don't run to tell the financial aid office that you are about to sell a house for 50k. the only way i see that this could affect your financial aid is if you are heavily depending on federal loan/grants.  if you got or are going to get institutional grant/scholarship, you shouldn't worry about anything.