Cal Grant Disqualification!

<p>@dodgersmom that’s what I was afraid of. I didn’t know if the rules for Calgrant were based on FAFSA or something else. What if the student was initially eligible for something like simplified needs test on the FAFSA that require them to enter their assets?</p>

<p>Simplified needs says they do NOT need to enter their assets. </p>

<p>I believe we are talking about two kinds of eligibility. This student could very well be eligible for the Prll Grant and NOT be eligible for the Calgrant (because of the assets). The FAFSA has an asset protection allowance so most of $68,000 would be protected even if reported.</p>

<p>Since the Calgrant ceiling doesn’t include home equity, one option (for future years, if it’s too late to change anything for this year) is to pay down some of the mortgage to get them under the asset ceiling, and then apply for a home equity line of credit. That gives them access to their equity for emergencies, but it doesn’t count against them for financial aid. </p>

<p>I guess my question is, was the student required to enter assets on the FAFSA and neglected to do so, or were they not required to, and being asked only now for asset information. My impression reading the OP was the latter, but obviously we don’t know for sure either way at this point. Can a school ask for and “penalize” a family for assets if they meet the requirements of the simplified needs test? Or does California always require students to enter assets for Cal Grant eligibility even if they’re not required for federal eligibility?</p>

<p>

See <a href=“http://www.csac.ca.gov/pubs/forms/grnt_frm/g-35_asset_verification_form.pdf”>http://www.csac.ca.gov/pubs/forms/grnt_frm/g-35_asset_verification_form.pdf&lt;/a&gt;

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<p>

Your parents could buy insurances (such as home insurance, life insurance, & medical insurance) in case something happens to your family; then use the savings to pay for your schooling.</p>

<p>Get a second home equity loan for emergency, then pay down the home loan using the savings and this is for next year.</p>

<p>Thanks for the link, @4kidsdad! The asset verification form is quite clear: asset information must be entered for the family’s assets as of the date the FAFSA was filed. So it’s too late to change anything now. But these are some great suggestions to help your family restructure things for next year.</p>

<p>Interesting about FAFSA letting them skip the asset question. I was always under the impression that being allowed to skip the assets questions varied by State of residence. We qualified for simplified needs every year but the first (had to file 1040 because of a State tax refund) but we always still had to enter our assets. Always thought it was odd in our case as our small State grant was based on EFC only. Guess they must have changed the forms since we did it.</p>

<p>Anyway, the OP has to report his parent’s assets. It is not a choice and getting aid by not reporting it is fraud. </p>

<p>The for @4kidsdad‌ posted also clearly states “As of the day you completed your FAFSA…” for all the asset questions. So there is no opportunity for those who didn’t have to report assets for the FAFSA to use a different date, unfortunately for the OP. </p>

<p>This is interesting because a student I know who is independent was asked ‘do you want to report assets’ on FAFSA and was allowed to skip. The UC aid gave Calgrant estimates since student has zero income and on free lunch, of course. But now I find that student has assets slightly over Calgrant ceiling. So would have got nothing? But student got aid at privates even with assets reported (11k to 2k to 0) so chose one of those.</p>

<p>This student with no Calgrant will have to pay something like 12k extra, I think. </p>

<p>Julie…</p>

<p>will you be going to a UC? If so, and your EFC is still low, then you will get UC aid in place of that cal grant. what is your efc? and where are you going to school.</p>