<p>Hi, I am a graduate student filling out my FAFSA. I have a quick question that I hope you all might be able to help me with. I have money in my bank account that I would like to keep for emergencies and moving expenses. Most of that money I received from financial aid loan packages. Do I need to report that under assets? It's my understanding that we do not need to report assets from any type of financial aid. Is this true?</p>
<p>Thank you</p>
<p>I guess I am not clear
is this money from education loans?
have you already paid off tuition and expenses?
an education loan is meant to be used to fund education
a loan you receive for other purposes can be used for personal expenses like emergencies
If you are using an education loan to fund something besides education you run the risk of the lender finding out and taking legal action against you, if you are using the money in a way other than what was promised.</p>
<p>It is an educational loan, and I have paid my tuition. However, for example, I will be moving from one site at school to another site... this will not happen until mid August, so I want to keep some money to do that. But in either case, are educational loans reported as assets if I still have some of it in the bank but will be using it for educational purposes?</p>
<p>Any other opinions/ideas from people out there?</p>
<p>just call FAFSA and ask them</p>
<p>I think you're confusing income, loans, and assets.</p>
<p>Student INCOME that comes from grants or scholarships doesn't count toward the FAFSA calculation. </p>
<p>LOANS, whether for college or otherwise, aren't INCOME. You take out a home equity loan, and it doesn't count as income, for example. You borrow, you pay back. No net income.</p>
<p>Money you received from Work Study counts as (potentially taxable) INCOME. But it's not included in the FAFSA formula. There's a student income protection allowance of about 2,600-- so the first $2,600 of non-work study income doesn't get assessed by FAFSA.</p>
<p>OK-- done with INCOME.</p>
<p>ASSETS: Anything in cash, savings, checking, non-retirement investments, that's in the student's name, gets assessed at 35% each year. No protection allowance. Doesn't matter where it came from. </p>
<p>So: Borrow 100K and drop it in your checking the day before you complete FAFSA, and it doesn't impact your contribution from INCOME (loans aren't income). BUT-- you now have 100K in assets, and that will decrease your aid package by 35K in the next aid year.</p>
<p>So, long answer short: Yes, you report the assets. Or spend them down before you file the FAFSA, paying off loans or bills, paying tuition, or converting them to non-reportable assets (computer, car, rent payment,clothes).</p>
<p>Adding-- there are some differences in the FAFSA formula for grad students (grad students are generally considered independent, for example) but the basics are the same.</p>
<p>Thank you, that post was extremely helpful.</p>