I know this question might have already popped up before and I’m sorry in advance! I just received some graduation money and I wanted to make a bank account so I could keep it in there. I was wondering if that would affect my financial aid for the future years if I decided to keep it for any emergencies?
It needs to be reported as an asset if you have it on the day you fill out FAFSA every year, whether you put it in the bank or keep it under your mattress.
Yes. Any money you have has to be reported. You report the balance as of the day you file the FAFSA (Oct this coming year).
It might change your EFC or it might not.
If you qualify for auto zero EFC or simplified needs with parent income and one other qualifier (can file 1040 A, dislocated worker or receive federal means tested benefit), assets won’t be considered.
If your assets count then they will increase your EFC by 20% of asset amount.
My D had $1000 saved up, so her EFC increased by $200.
Having the money will potentially affect your aid.
Having it in a bank account won’t: it’s not about where you store it, just that you have that money somewhere.