<p>Hello, </p>
<p>I have a question. I'm currently an undergrad and was previously using financial aid. I've been out of classes for awhile and want to go back. </p>
<p>During this time our financial situation has totally changed. Last time I filed for FAFSA the EFC was zero as my family had very little.</p>
<p>I took stopped college for awhile. </p>
<p>Since then (1.5 years+), in total me/my family had inherited 200K+:</p>
<p>I have 90K which I don't have access too, my family put it in a CD. Yes I'm over 21 and it's in my name, but I really don't have control on what I can do with it (in my culture even though legal age, at this point in life, my family still has say-so over these things). </p>
<p>My family (which I was listed as a dependent and used their tax info) now has around 150K-ish in their name which is in a savings account. </p>
<p>Nothing has changed, we still live in same house, we still drive the same cars (late 90's models), the money may be there but it's not like I have any access to it. I still live at home, so my family does offer shelter/food. </p>
<p>They will not be paying any tuition. </p>
<p>If I take the CD off my name, will that be of any help?</p>
<p>I'm not employed currently, hell, I'm still wearing the same clothes I did before the money. </p>
<p>Is there any chance I'll get any financial aid, if any?</p>
<p>That $150.000 is an asset and will be counted as such. Have you asked your parents if you can use a portion of that money for your college education?</p>
<p>If the money is in the student’s name, it will be assessed at about 20%. If it’s in the parents’ names it would be about 5.6%.</p>
<p>If your family income is below…hmmmm…I think it’s $50,000 and your family filed a 1040A or 1040EZ tax form, you might be eligible for the simplified needs test whereby the assets (that’s your savings etc) are not counted. Someone else here will have to clarify that.</p>
<p>Thumper, I have 6 classes I need to finish at CC. </p>
<p>I was working during the time I wasn’t in school and have saved some $, not a lot but I know I can cover CC tuition and books for those 6 classes.</p>
<p>I’ll be transferring soon and I’m very confused as to what to do. </p>
<p>I’m the first in my family to go to college. We still live check to check. </p>
<p>I’m going to an instate school, the cheapest one I can find.</p>
<p>I’m expecting around $12K max annually for tuition w/ books (15 cred per semester). And at that point, unfortunately it’s too far from home - 2 hours, I’ll have to live some place so now I have to take in living costs. </p>
<p>I’m in the process of starting a biz that can be run from online/home. I believe by the time I’m ready to transfer it can cover my living costs, the tuition/books is another thing. </p>
<p>Is it a waste of time for me to file FAFSA due to what’s in my/and parents names now?</p>
<p>My father is out of the picture completely. So FAFSA is all on my mother’s income. She’s currently unemployed. The last year she did not file taxes as she’s been on workman’s comp for a shoulder injury. </p>
<p>I’m seriously not able to sleep at night thinking about this.</p>
<p>I looked at some rates at loans (Like wellsfargo) for 10K they are saying in interest I’ll be paying close to 7K. Is that right? For every 10K I borrow, I’ll eventually pay back a total of 17K?</p>
<p>Thumper</p>
<p>ON 1040EZ…</p>
<p>Yes’ my mother had filed a 1040EZ the year she was last employed (the past year she hasn’t been).</p>
<p>And yes she made way under 50K even before the shoulder injury.</p>
<p>I hope someone here posts accurate information about the simplified needs test. If this student qualifies…the assets would not be reported.</p>
<p>Hopefully someone with more information than I have about this will post…just be patient…it’s dinner time here on the east coast…and it’s the middle of the workday on the west:)</p>
<p>One more thing I forgot to mention, I’ll be 23 this August. </p>
<p>When I apply for financial aid next year (if I do), I’ll be 24 that year, so at that point I’ve heard I can apply as an independent. Only the 90K would show up as mine then.</p>
<p>Your better off NOT being independent…but I don’t think you have a choice. When you fill out the FAFSA, you will be asked a series of questions. One is about your age…if you answer yes to any of these, you are considered independent for financial aid purposes.</p>
<p>Regardless of your culture, you do have total control over funds in your name, and should of course use them for the very worthy purpose of completing your education. And given that you have adequate funds to pay for school, I don’t see why any college should give you aid that is intended for those in need. The schools won’t take “culture” into account, and neither should you. You’re 23. Time to take a stand. Good Heavens. It’s not as if you’re using the money for wine, women and song.</p>
<p>MommaJ, I completely understand. </p>
<p>My culture is going through growing pains, as a lot is changing. Its still extremely extremely rare for people to go to school in my culture, especially for a woman. </p>
<p>Unmarried people in my culture don’t even move out from parent’s home until married.</p>
<p>It’s not so much an “American” culture that when you turn 18 you do whatever you want, you can, but it’s based on respect it doesn’t matter if you’re 50, it’s still your parent. I can’t explain that any further, really as it’s just different cultural upbringing.</p>
<p>I know I have to look at this in the worst case scenario as in not counting what’s in that CD. </p>
<p>Especially as I plan to go to grad school, where I may really need it. </p>
<p>I don’t know…just here for suggestions.</p>
<p>I think you need to explain to your mom how college aid works. If you inherited that money, it is seen as available to pay for college. A CD does not make moey unavailable. Even if it were in a trust, you’d be expected to borrow against it. </p>
<p>No college with a COA of $12K will give you a cent. You can’t decide to save the money for grad school.</p>
<p>I don’t know of many cultures that don’t value education. Hopefully she’ll see that it’s an excellent use of the money.</p>
<p>My mother still feels like there’s magic involved where everything will get paid for. I’m in the process of trying to explain to her that it may not work that way anymore, and if so, definitely not all of it. </p>
<p>Even if the CD is moved into someone else’s name (I’m sure there’s a trace of X funds going to into Y’s account) that I don’t think that would really help. </p>
<p>If I have to go to school on what I can pay for myself, stop work, save, and go back again. That’s life, I guess. I don’t have a problem doing that. </p>
<p>I know grad school I’ll have to take out loans.</p>
<p>My goal is to finish my undergrad degree with as less debt as possible. </p>
<p>My culture is Romani/Roma it’s Gypsy, no education is not valued (yet). I haven’t met another American Gypsy that’s completed high school (which I didn’t, I went back for GED), let alone completed college.</p>
<p>It sounds as if you’ll qualify for the simplified needs test for FAFSA (under $50K, no tax form required or eligible to file 1040A or EZ)…if your mom’s income is under $30K you may qualify for the automatic 0 EFC. You can read the qualifications in this document (page 4-6). If she qualifies for simplified needs, all assets are excluded from the EFC calculation for federal aid (some states still require you to report them in order to qualify for state aid though). If you have or qualify for a 0 EFC, you’ll receive a full Pell grant of $5550/year. </p>
<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf</a></p>
<p>In any case, even if assets are considered, you should be eligible for Stafford loans as long as you file FAFSA (and have made satisfactory academic progress and are not in default on any previous student loans). For sophomores, the Stafford limit is $6500, for juniors and seniors it’s $7500…a substantial portion may be subsidized so I’d look to the college for loans before going to a bank/private lender. The subsidized loan rate is around 4.5% this year, and unsubsidized is only 6.8%. Finaid.org has good info on student loans and loan calculators you can estimate your payments with.</p>
<p>SK8RMOM, Thanks for the input very helpful.</p>
<p>I appreciate everyone’s input on this. </p>
<p>Thanks for taking out the time to read my Q’s.</p>
<p>I suggest writing about your culture in your transfer essays - though it takes some finesse to intrigue the admissions people rather than make it look like you are playing the URM card. It has at least a shot at helping you garner scholarships and admissions … if you can pair that up with showing great personal maturity in your essays you may be surprised at the scholarships that are out there. </p>
<p>You will need your mom to file a tax form for the year preceeding the year YOU file your FAFSA. YES YES YES YES fill out a FAFSA - I think you will qualify for many subsidized loans and more importantly, MOST grants/scholarships that are given out by the colleges themselves require a FAFSA to be filed first. No FAFSA (and CSS if asked for) equals automatically zero grants/scholarship consideration.</p>
<p>Your mother’s magical thinking aside, just keep working on gently and steadily educating her on the FAFSA and financial aid side of college. Try coming up with your own meme that you keep reenforcing that counters your mother’s magical thinking but yet appeals to her logical side as well. “Hope for the best, plan for the alternative.” Somehow you need to have your mom understand that you planning for worst case scenario is <em>not</em> you disrespecting her belief systems, but rather an aspect of <em>you</em> that wishes to be Resourceful, Independent and not reliant upon others. Or some such thing. </p>
<p>Best of luck.</p>
<p>There is no need to file a tax form if it’s not required by the IRS. She simply must indicate “will not file” on the FAFSA and calculate what her AGI would be if she did file…sounds like it would consist mainly of interest income. Worker’s comp gets added as untaxed income.</p>
<p>sk8rmom…what happens to this kiddo when he in filing the year he becomes 24? At that point, he will answer “yes” to the question about age…and I believe he is deemed independent for FAFSA purposes. Does the simplified needs test apply to independent students?</p>