CSS/FFSA and personal loans.

Paying for College
1

<p>A good friend of ours is having some financial issues. Earlier this year we offered to loan her some money, $5000. This isn't something we usually do, but she's had many hard knocks financially this year, through no fault of her own, and we don't want her to lose her house. She finally agreed to take the money. </p>

<p>I am in the middle of filling out the CSS. My son wants to apply ED to a school that will give us an estimate of our financial aid package before he signs the ED form. School is definitely his #1 choice. </p>

<p>It was NOT our intention to loan money to hide assets. We didn't even think about that when we offered to loan. Our assets are pretty small, as is our income. Will the school notice we've written this check? Or is there a place to put this on the CSS? Or should I put it on there? There is always the possibility we will never see that money again, as has happened to us when we've loaned money to family. I'm quite worried about it.</p>

<p>Thanks.</p>

2

<p>Did you have the person you loaned money to sign a promisary note or any type of legal document on the loan to document the transaction?</p>

3

<p>If you have no promissory note, consider it a gift, and just leave it out of your calculations.</p>

4

<p>You have done an admirable thing. Don’t worry about perceptions of it. If the schools ask about the check, then you should reply honestly. I would guess that this is not the first time that you have been generous with others and FA officers will certainly recognize this.</p>

<p>Applicants who hide money do so consistently and blatantly. $5k really is not enough to make a huge difference.</p>

5

<p>Thanks, everyone.</p>