Family help

<p>I was verified and the costs are greater than my dad's income. If a family member helps to pay the bills sometimes, will my efc or financial aid change? I'm satisfied with my predicted aid and I don't want to have to pay more.</p>

<p>Yes it can. It depends on how the help is given.</p>

<p>What do you mean? Like cash or a loan? I think she puts money in his bank account. Was I supposed to put this information in the fafsa?</p>

<p>IDK, you might get grants from your college in addition to the FA.</p>

<p>Yes, if it’s cash given or a bill paid that can count as untaxed income. But if it’s a loan, even if it may be forgiven later, it doesn’t. That’s why it’s often suggested to have a relative loan you money for school, then forgive the loan upon graduation if they’re inclined, than to gift the money to you if it’s a sigificant amount. By “the costs are greater than my dad’s income” I assume you mean that his income shows that there is a discrepancy between living expenses and cash flow available. This could also happen if he had previously loaned money out and it is being returned now and used to supplement his income. Is the college actually questioning how you live on the amount of income he shows?</p>

<p>Yes, it says if his income is less than the cost I need to explain how we lived and paid our bills. Should I change the fafsa now? But I’m pretty sure my aunt just gave my dad money and it wasn’t on the tax returns. I really hope just because we were poor and weren’t able to afford living expenses and got help from a relative, I’ll be given less aid. </p>

<p>And if she plans on giving me money, does that mean I have to go to the bank and tell them it’s a loan?</p>

<p>Anyone? 123</p>

<p>As I understand it…</p>

<p>Money that your aunt gave to your father isn’t relevant. If you need to explain that your aunt gifted your father money just to help the family through this difficult time, then just tell them that. It isn’t something that is asked on the FAFSA under parent information, and it wouldn’t need to be reported on his tax return. It will explain how your family managed on the insufficient income from your dad. As far as FAFSA-only schools are concerned, it should have no effect on your aid.</p>

<p>If your aunt pays bills for <em>you</em>, or gives you money to pay those bills (tuition or any other bills), then there will be a place on the FAFSA for you to declare that the following year, that is, the FAFSA the year <em>after</em> you receive the money. FAFSA treats it as untaxed income for you. Depending on the amount your aunt contributed it may well affect your aid for the following year.</p>

<p>Even if it’s a one-time gift and you can’t expect it in subsequent years, it will still be considered untaxed income. It does seem the best thing would be for your aunt to loan you the money, and then if she is so inclined to forgive that debt when you finish college. It’s one of those semantic things; call it a “loan” and it’s off the record, even if the aunt has no intention of making you pay it back.</p>

<p>Thank you so much.</p>

<p>I feel much better and I can finally finish all these forms :)</p>

<p>thats good. :)</p>