<p>i had award a pell grant for my first year in college. and i also receive a scholarship so can i use my scholarship i buy some stock? will it hurt my pell grant if i own stock? if not, how many money i can spent on stock?</p>
<p>thats a good question. id like to know as well</p>
<p>Disregarding the whole issue of whether you should be doing this and what the terms of your aid is, it depends on how you got your Pell grant. Were you eligible for an Automatic 0 EFC or the Simplified Needs Formula? If so, I’d guess it wouldn’t make a difference unless your parents’ circumstances change. Otherwise, student assets are assessed at 20% and that amount is added to the EFC for the year…so you should expect a decrease in your Pell grant, or elimination of the grant if that puts you over the maximum eligible EFC.</p>
<p>i were eligible for an automatic 0 EFC. so it means it wont have any different if i buy stock?</p>
<p>I notice this is your first post. I do not know what your FA (financial aid) package is, but if you get a scholarship, I would assume that your FA package will reassessed by your school, so your package will change. Also, if you have loans, then it makes more sense to take less loans rather than borrow that and invest some money in the stock market.</p>
<p>You are going to be paying interest from day 1. Yes, there are people who will suggest put money into the stock market and use the gains to pay off your loans etc. I would not advice that for a variety of reasons. </p>
<p>Also, you are obliged to report your scholarship to the school. After all the Pell grant comes from tax payers and before you make any investment decisions, make sure that you can use the scholarship for non educational related expenses. Possibly the school may adjust the work study etc.</p>