FAFSA - Savings vs Checking Account

Paying for College
1

<p>Does it matter to FAFSA regarding money in a Savings vs. a Checking Account? I have some extra money in my checking account that I'd like to put into a savings account to earn interest but I don't know if that will effect my EFC?</p>

2

<p>Any money, including what’s in your pocket, under your bed is reported on the FAFSA as assets on the day you fill it out and it is given a direct 20% hit towards your EFC. The smartest thing to do with it is to open an account with your parents primary, you secondary, and reimburse them for expenses they paid out for you, and let them report it instead so that you have a big fat zero in assets. Parents get an asset protection allowance and are only assessed 5.6% of the assets on the day FAFSA is filed. Even so, a day should be chosen when there is not a large amount in the accounts. Payday is not a smart day to file or any day when earmarked funds are sitting there, because you have to report ALL assets. Just because you have the insurance money that is going for the damaged trees, doesn’t exempt those funds. Wait till you pay the tree people before filing if that is substantial amount, because it can affect the EFC.</p>

3

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No See <a href=“https://fafsa.ed.gov/help/fotw31cF4c.htm[/url]”>https://fafsa.ed.gov/help/fotw31cF4c.htm&lt;/a&gt;&lt;/p&gt;