This is correct. If the money isn’t in the student’s possession at the time the FAFSA is initially filed, it is not reported as an asset.
The new FAFSA Simplification rules no longer require a student to report money someone else has paid for them or given to them (assuming it’s not sitting in their bank account or under their mattress when the FAFSA is initially filed).
This is great news! Remember to put a lot of thought and care into your safety school though. It’s the most important one on your list. Make sure you are truly comfortable going there. Once you have that down, everything else is lagniappe.
Yes, I know. Just assumed the student was getting the $$ from the family prior to that. Families commonly empty their account on the day FAFSA is filed.
You’re absolutely right that the family will want to make sure that they don’t have any extra money in their accounts when they file the FAFSA. If someone wants to help with college tuition, it’s best that they either give it to the family after the FAFSA is filed … and use it before the next FAFSA is completed. Or the person helping out could maybe pay the school directly, if that works for the family.
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