<p>I am getting ready to file the FAFSA for my daughter....but have a question. She has about a thousand dollars in her savings. Should we leave it or take it out? What is the right thing to do? She does need a few hundred for a trip she is taking this Spring. Am I right that she can spend it for things as long as they are things parents would pay for?? I am not sure what. It isn't enough for a computer and the trip. Sorry if I am lame in not understanding this. Any help is appreciated.</p>
<p>She can spend it on anything she wants. But you are supposed to include in FAFSA the balance as of the day you file. You cannot 'anticipate' spending it. So if it cannot be spent before she files it should be included.</p>
<p>Student assets are hit for 20% so for a thousand it will increase her EFC by 200.</p>
<p>If there is something that you are thinking of buying for her (such as a computer) she could always buy it for herself now and you can help her out with or give her the trip. Parent assets (over the protected allowance) are assessed at 5.6% ish.</p>
<p>Thanks for the reply! Do we have to have documentation for what she spends it on?</p>
<p>About 30% of FAFSAs are have a * by them indicating they must be verified. I don't know what sort of documentation would be asked for in that circumstance.</p>
<p>We didn't have to verify anything until a particular school asked about an account that we had liquidated, and then the school accepted an e-mail from me about what we had spent the money on.</p>
<p>Thanks so much! Guess I have to figure out what she needs.....I'd hate to get a computer now they get obsolete so quickly. But that may make the most sense. Thanks for your help!</p>
<p>That makes me feel better. A chunk of this money is for spending money on a trip to Europe in March.</p>
<p>If you are getting a computer google 'brand of computer' coupon</p>
<p>Usually Dell has coupons out there for $300+ and HP often does also.</p>
<p>Thanks....I'll do that. Plus my husband is looking into a car for her. Maybe her money can be a downpayment...</p>
<p>Maybe someone will know the answer to this.....</p>
<p>I am filing the FAFSA this weekend. But with last years numbers as my husband is self employed and we don't have our taxes back. I will have to correct those numbers...can I correct the balance in my daughter's savings account as well then??</p>
<p>According to the FAFSA instructions, you should not correct or update assets, which would include the savings accounts. It should be the balance as of the day you initially file FAFSA. Only the income and tax information should be corrected.</p>
<p>Maybe I missed something, but since the $1000 will only translate into $200 higher EFC why not just save it and use it for her education? Or did you not intend to use her money towards college?</p>
<p>abasket is right. The $1000 isn't going to make a huge difference. There is a minimum a student is expected to contribute, anyway.</p>
<p>When I worked in financial aid back in the dark ages, we actually asked for a copy of the bank info for the day on which the FAFSA was filed (for those chosen for verification). You never know what kind of documentation you'll be asked for if verified. It's always best to just follow directions & be honest.</p>
<p>Thumper, swimcatsmom and other experts</p>
<p>May be this question is answered, but could not find. I am about to submit FAFSA and had included **my (parent) **checking account balances (about 10K). But, I just realized I had set online payments of all the bills due (~$8,000) this month-end (31-Jan). Do I still report $10K or can I deduct these expenses and show a net balance of $2,000. These are not anticipated expenses, these are real bills (mortgage, day-care, parent care, kumon tuition and such).</p>
<p>Appreciate your response.</p>
<p>I called FAFSA help - he clarified, the balance has to be reported as of the date of filing. Even if I have scheduled payments and the payments will go through in the month-end, the FAFSA report has to reflect balance as of the submission date.</p>
<p>Hope this helps some one. Thanks a lot,</p>
<p>You have discovered the timing aspect of filing! Actually, though, if you were to run the numbers both ways, you'll probably find little difference.</p>
<p>Askme - assets (parent) are assessed at @5.6% so the $8000 difference in the account would make @ 448 difference to your EFC which may or may not be significant to you.</p>
<p>You can leave it as is. Delay filing a few days (though you would have to account for any money coming in in that time). Or is there a way you can make the payments early? If you have an online setup with your account go in and change the dates (to tomorrow maybe) for this month then change it back next month. Just a thought.</p>
<p>If you are on the cusp of qualifying for the Pell grant (which is unlikely if you have monthly outgoings of $8000) one thing to keep in mind is that qualifying for Pell can also be neccessary to qualify for certain other grants such as ACG and SMART so in that situation a few hundred $$s can make more difference than you might think. For instance a 3rd year biology student who qualifies for even the minimum PELL may be eligible for the SMART grant of up to $4000. Without the PELL he/she would not be eligible.</p>