<p>I am currently considering going back to school in the near future to pursue an engineering degree. I have been working for the past several years and managed to save a decent amount in that time. I figure with zero income I can survive as a full time student for about two years.</p>
<p>The tuition at my prospective schools is relatively inexpensive. Living expenses are what concern me the most. Ideally I will find part time work (10-16 hours per week) to help with expenses but I do not want to rely 100% on finding a job each semester that accommodates a school schedule.</p>
<p>So I've been reading up on various forms of financial aid and the two big ones seem to be Stafford loans and Pell grants. I would be okay taking out a loan to finish a degree but definitely not to start one. The Pell grants seem very helpful but also imply that having a savings account will make one less eligible. Am I correct in assuming that due to saving money I will not be able to receive the same aid as someone who did not save any money? Am I expected to spend my entire savings then take out loans when the money runs out leaving no safety net?</p>
<p>Your age. If you are under 24 (not married, not a veteran etc), you are considered a dependent for FA and would have to report your parents’ financial information as well as your own. Dependent students have no asset protection and 50% of assets go to the EFC.</p>
<p>If you are over 24 (or married, a veteran, etc), you are independent for FA purposes and only have to report your own (+ spouse’s if you are married) income and assets. An independent student with an income of $49,999 may qualify for the simplified needs test where assets are not considered in the EFC formula. You have to meet the income cut off and one of the other criteria:</p>
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<p>You may find your savings count against you the first year as you will have income to report. It is possible they will not after that if you meet one of the required criteria.</p>
<p>I am over 24, single, and not a veteran. I currently am employed but making less than $49,999 per year. If I attend school and stop working my last tax return will be a 1040EZ but then I will not need to file taxes afterwards (?) if I do not work. However I will be looking for part time work (which will then require tax return) since tuition/living expenses over 4-5 years will run $75k. My initial hope is to try and work off at least $15-25k, try to keep loans under $20k <em>$10k preferred</em> and use savings to get through an engineering program (or other degree if I change my mind in next 1-2 years).</p>