Hello everyone, I’m planning on returning to college this year. I already have a bachelor’s degree and wish to pursue a second one as I wish to leave Business Admin and get into Computer Science. Because I already have a bachelor’s, I know that I’m not going to receive much aid from FAFSA but I was recommended to fill it out anyway by one of my Community College’s Financial Aid Advisors and see what I’m elgible for. Unfortunately, I already missed the California state deadline for Cal Grants, but I still have 3 months before the Federal deadline. My question though, is it a good idea to try and empty my bank account prior to submitting the FAFSA? I have about $13,000 in my bank and I see that there’s a question on FAFSA asking “As of today, does the total amount of your current assets exceed $700.00?” Hypothetically, If I were to transfer all of the money but say about $300 from my bank to my parents, would I technically be able to say that my current assets do not exceed $700, or would that be considered fraud? I don’t want to get in trouble but I still want to maximize my chances for financial aid being a 26 year old bachelor’s degree holder. Also, I still live with my parents but for some reason, FAFSA considers me as independent. Is there a limit for how much money you can have in your bank account before FAFSA doesn’t consider you eligible for financial aid? Would it be wise for me to go to my bank one day and withdraw a cashier’s check for $5,000 and then get another cashiers check for $5,000 the next day so then I only have about $3,000 in the bank when I apply for FAFSA? Thank you for your time.
transferring over $10.000 will be reported to the feds for both you and your parents. The IRS may come sniffing around.
If you give the money to your parents as an unconditional gift with no expectation that you will ever get the money back, this would be fine and you could honestly report on FAFSA that you have $300 in your bank account. But I don’t think this is what you have in mind. Temporarily placing your money in your parents’ account and not reporting it on FAFSA as your asset would be fraud.
FAFSA considers you to be independent because you are 26 years old. How old do you think you should be before you are considered independent for FAFSA purposes? Should a 40 year old living with parents not be considered independent?
For some federal financial aid, notably direct unsubsidized loans, the amount of money in your bank account makes no difference at all, although there may be other limiting factors, which might be the case for you.
Your money in the form of the balance in your bank account or a cashier’s check in your wallet is still your asset that must be reported on FAFSA. So no, that would not be wise. In fact, it would be the opposite of wise.
You’re not going to be eligible for free federal money regardless of what’s in your bank account because you already have a degree. You’ll be able to get loans, assuming you didn’t borrow the max for your first degree.
^^^^. You already have a bachelor degree. The only federal aid you are eligible for is unsubsidized student loans, and even then only if you have not maxxed out the federal studetnt loans while working on your first degree. For those loans, yes you do need to file the FAFSA, but how much you earn and/or what you have in the bank or under your bed is immaterial. So stop worrying about trying to move your money around.
Oh ok, I guess it doesn’t matter where my money is right now and I should just apply for FAFSA now?
If you have $13,000 in the bank, who don’t you just use that to pay for your studies instead of taking on debt?
@happymomof1 I was just hoping that I could get some free money (not loans) from FAFSA, if not then I’ll just use my saved up $13,000 to help finance my second journey through college.
FAFSA is an application. It does not give out money or aid or loans.
Since you have a bachelor’s degree you are not eligible for grant aid anyway. Only loans provided you did not max out as an undergrad.
You have a degree…so no free money from feds or Cal Grants
Are you working now? Does your company have tuition reimbursement? You don’t have to go to school FT, PT with a company that has tuition benefits would be a great way for you to fund your future. You can take classes all year round to limit the time it takes and you already lie with your parents so you have that on your side.
@Sybylla Yes I am working now, but it’s just at a part-time fast-food restaurant. They don’t have any tuition reimbursements or other benefits as far as I know.
I think Mc Donald’s, Taco Bell, Walmart, UPS provide some educational assistance, check into it.
Ask your HR department at your job.
Why don’t you have a FT job? You aren’t in school now? You are using your undergrad degree?
@Sybylla I don’t have a FT job, only a part time job. No one’s ever hired me for full time, I can’t make it passed the interview segment of job applications hence why I want to get a better degree.
@mommdc Ok, I’ll make sure to ask my boss at work tomorrow, thank you for the tip.
Free advice…maybe find out what is getting in the way of you advancing in interviews. Even fast food places have management training programs.
Another degree might help…but then…it might not.
The direct answer to your question is , “yes, it does make a difference how much you have in the bank on the day you report your balance to FAFSA” You should not pick a pay day or a day when you have accumulated funds for a specific purpose that is going to be paid in the near future. THe financial aid formula does use assets, and the formula is heavier on student assets than parents’. Being an independent student is also going to be an issue. I can’t remember what the formula is for need for independent students in terms of % of assets and income. Some threads here can guide you on that.
However, it is also the case that getting grants and awards for a second bachelors degree is difficult and unlikely. Once you have a bachelors degree, a lot of sources for funds close up for a second such degree. Loans are what tend to be available. That is the case for government money and most all colleges have the same guidelines.
One last note: there’s a big difference between being careful and wise about picking the day when you snap a shot of your bank account and being a cheat. If the funds are in a shoebox under your bed, they are still your funds. It’s lying and cheating; fraud to hide the money away. Get caught, and it’s a federal issue.
It seems almost unbelievable that you don’t have a full time job in this economy. I agree with the above and you should get some career counselling. What was your undergrad degree, school, GPA? Where are you located? What is a business admin career path?
@cptofthehouse Ok I just finished the FAFSA today and was completely honest about the $13,000 in my bank. If I don’t get any financial aid then oh well, I’ll just have to use my own money.
@Sybylla My undergrad degree was Business Administration; Information Systems. My school was University of California, Riverside. My GPA was 3.08, I’m located in Southern California. As a side note, I am diagnosed with Asperger’s Syndrome which is a social disorder and form of autism and makes the interviewing segments of job applications a bit difficult for me. I did apply for vocational rehab last week so hopefully I’ll hear back from them soon to help me with my job search/educational path.
?? You have a business degree, but after being interviewed, you’re never actually hired for better (full time) jobs. There has to be something else that’s wrong. Perhaps you don’t interview well?