Financial Aid Proceeds Counted as a Student Asset

Paying for College
1

I think I have seen this discussed, but I couldn’t find it, so I apologize if I am asking a question that has already been answered.

Student has a decent sized balance in his checking account right now, but that’s mostly due to financial aid that is paying for this semester. I figured it counted as an asset, but I recall a discussion saying that financial aid proceeds don’t get counted. I just can’t find that discussion, so I would like some clarification if anyone could provide it. I guess I could wait and file the FAFSA right before aid gets paid for the spring semester, but if I can do it now I would rather get it done.

He is near an EFC cliff for keeping a scholarship, so I need to make sure I file the FAFSA on a day where both his and my checking account balances are minimal. That’s why I am sweating the last few hundred dollars on the EFC.

Thanks.

2

I do not believe student financial aid money is counted as an asset…at least on the FAFSA.

Hoping someone else will chime in!

@BelknapPoint could you clarify?

3

On FAFSA, a student reports assets such as cash and balances in savings and checking accounts through question 40, which very clearly provides this guidance: Don’t include student financial aid.

https://studentaid.ed.gov/sa/sites/default/files/2020-21-fafsa.pdf

4

Perfect! That’s exactly what I was looking for. I should have been able to find it myself, but I didn’t want to start the process of completing the form if I couldn’t finish, so I never made it deep enough to see the directions for that.

Thanks!