FAFSA question 41 asks for a total of all the money in the student’s accounts. The instruction state: “Do not add student financial aid into your account balances”. My daughter was awarded a scholarship by her school that paid her a lump sum of money several weeks ago. The purpose of the scholarship was to provide support for low income students so that they can conduct research or work in public interest during the summer. My question is whether her scholarship is considered “financial aid” for purposes of FAFSA question 41? Also, should it be reported as a student asset on the CSS?
As far as I know, student financial aid in the bank refers to federal student loan refunds and federal grant refunds (like Pell).
Those don’t count as assets for FAFSA (not sure about CSS profile).
Sounds like your D received a research stipend? Are those taxable scholarships?
If so she will report it on her 2016 tax return as taxable scholarship income and then on 2018/19 FAFSA she will list taxable scholarship amount included in AGI on 2016 return.
If she spends this money this summer for living expenses when she does her research then it will not be in the bank to be considered an asset for the 2017/18 FAFSA available to file in October.
The college called it a scholarship, not a stipend. The problem is that it dramatically increases the money in her checking/savings accounts. If we are required to include it, there will be an impact on her financial aid.
I just got off the phone with the FAFSA help line. They told me that scholarship = financial aid for the purposes FAFSA question 41 and not to include the money in the total for my daughter’s accounts. Does anyone know if this also applies to the CSS?
If the purpose of the scholarship is to provide support for low income students so that they can conduct research or work in public interest during the summer, won’t all or most of the money be spent over the course of the summer, so that it won’t be sitting in a bank account to be reported as an asset when the next time rolls around to file FAFSA or Profile?
As long as she meets the school deadlines, she can submit the forms whenever it’s most advantageous for her, i.e. when her (and your) assets are at a low point.
I’m sorry she waited this long. If she had submitted FAFSA the week Before the funds were issued this wouldn’t be a problem. @BelknapPoint is right - wait to submit till after some/most/all are used up.
Even if the FA deadline for a returning student is later, you should still file FAFSA early. Grants such as SEOG, Perkins loans and work study are in limited supply and schools give these out first come first served.