How could I invest student savings so it doesn't appear on FAFSA?

Paying for College
1

<p>Most colleges make you pay them all of the student's savings/assets over the course of 4 years. Frankly, I see this as a waste, so I was wondering if there's any way to invest my savings without having to declare them on CSS/FAFSA, or is holding it in cash the only option.</p>

2

<p>Well, since you arent sending them your bank statements, you have to ask how much you REALLY have saved when you fill out the forms...</p>

<p>Other than that, you could invest in material goods...I think the price of gold is rising and diamonds are going down (or did I get that backwards). A safety deposit box with a big gold ingot its a pretty good investment that doesnt really show up anywhere and then hey...I'll know who to call next time I need to do some casting in gold.</p>

3

<br>


<br>

<p>What a shame that you think this is a waste of your money. You should feel fortunate that you HAVE savings to spend on a college education. There are many, many others who are not as lucky. My opinion is that you are trying to skirt the need based finaid system which is really set up for folks who don't have savings for college or the income to support college tuition and fees. I know plenty of folks who wish they had money set aside so they COULD pay their college expenses.</p>

4

<p>Yeah, but I had to work to earn that money and I know plenty of people who worked the same amount and then spent it on cars and clothes and such or didn't work at all, and it turns out that it doesn't matter since I'll have to give all of that away anyway. And I don't have THAT much money set aside, I've just worked hard for the amount I've earned and think I deserve to keep it so that I don't have to ask my parents for pocket/book expenses when I'm in college.</p>

5

<p>Dress...just FYI....colleges DO expect a financial contribution from the students. Typically the amount varies but it is about 2-3 thousand dollars a year, and it increases each year. Unless you have hundreds of thousands of dollars saved you would need that money anyway. There is an expectation that you WILL contribute yourself towards your college education. And...also FYI, expense money is factored into the cost of attendance (tuition, room, board, fees, expenses).</p>

6

<p>Isn't money from savings and assets separate from the money you have to get from summer jobs and work-study?</p>

7

<p>Dressagechick, what I'm doing is I have my money in cash. It might not be the smartest option, but one of the reasons I do this is because the more money they see I have, the more money they'll make me invest in my college education. I personally believe in saving up for a rainy day, but I guess colleges believe in being payed first before students meet their personal needs.</p>

8

<br>


<br>

<p>Your contribution towards college is your contribution. The colleges really don't care where the money comes from. When they figure out your finaid (need based) package, there is an expectation that the student will be contributing. Summer job money and any savings would be considered student assets. Work study is another way to earn money. Money is money...</p>

9

<p>however work study money will be considered part of financial aid package and the money you earn will not be counted on FAFSA.
You are still generally expected to contribute $2,000 or so though</p>

10

<p>With money that is saved in the studnet's name there will be an expectation that approx 35% will be used toward the cost of college If it is not a substantial amount of money, then there is no need to try to get rid of it.</p>

<p>The fact that you do have money saved may be the difference in your being able to to afford or not afford the school of your choice. As Thumper said, do enough perusing on these forums and you will find many students who wish they were in your shoes and had some money saved toward their education and had to turn down schools because it wan't financially feasible. Be proud that you have a leg up in the process.</p>

<p>You must remember at the end of the day it is YOUR education and there is a reasonable expectation that you be an active participant in the financing of it. The financing of your eduction WILL come either through summer employment, student loans and/or work study. </p>

<p>The money that you have saved may be the difference between debt and no debt that you have once you graduate. It may be a good feling to know that you may have enough money first year that you will not have to balance work (or a student loan) with being a college freshman because that $2,000 can be used to purchase your incidentals, and you don't have to accept that part of the aid in your first year</p>

11

<p>You can't really cheat the college or the government. For example, if you make $200K and magically have no savings, have a Toyota, an alright house, they'll know what's up. You can try to cheat them but you will end up losing. They have formulas, experience, so you won't be able to pull a fast one on them. Besides, they'll just look at the 200K and simply say 10% scholarship, 20% loans, the rest out of your pocket, buddy.</p>

12

<p>What the OP has suggested is both illegal and immoral. It is illegal because you sign all the various forms saying that the statements are true. You are supposed to report your assets, whether they are in cash or not.</p>

<p>It is immoral because the POINT of the deception is to make other people pay for your education --- -ahh, the famous "OPM: Other People's Money!"
If you get financial aid fraudulently, EITHER you are getting subsidized loans, which means that honest taxpayers are paying the difference between your subsidized rate and the rate you pay, OR you are getting institutional funds donated by alumni who assumed the money was going to kids who could truly not afford it. Either way, it smells like "theft" to me.</p>

<p>OK, quick quiz: Read the following and discern the moral fallacy:</p>

<p>"Yeah, but I had to work to earn that money and I know plenty of people who worked the same amount and then spent it on cars and clothes and such or didn't work at all..." Ask yourself if two wrongs make a right. Ask yourself it is a good argument to say, "Other people are doing it, or doing worse, so I should be able to."</p>

<p>Ask yourself if someone with such a limited grasp of basic logic should be going to college at all!</p>

<p>Now try this one:</p>

<p>"And I don't have THAT much money set aside, I've just worked hard for the amount I've earned and think I deserve to keep it so that I don't have to ask my parents for pocket/book expenses when I'm in college."</p>

<p>I love it - the "I DESERVE it" argument. Imagine if we made THAT one universal! There are taxpayers who find that for every extra $100 they earn, almost $50 goes to federal, state, and local taxes! Imagine if we all got to decide, as individuals, what we "deserve."</p>

13

<p>There was a similar thread on the old discussion forum. If I remember correctly, the comments were harsher and the poster was told "fat chance." Besides, if you lie and get caught, Uncle Sam is gonna come back at you and in all probability you'll lose any chance of getting any aid in the future or funds from the college.</p>

14

<p>I have another question. I got into my early action school, which required a CSS profile by the early deadline. Since then. I've had to pay for my other applications and various tests and have become $700 poorer but I'm hesitant about putting the amount of savings I have NOW on the FAFSA that I have to send in January. But if I don't change the savings amount I'll have to pay money that I don't even have anymore.</p>

15

<p>Just be honest in the process, and don't try to nickle and dime the system. Remember you have to attest that the information you are giving is truthful. </p>

<p>Emsibdn, is correct if you make fraudulent statements on your financial aid forms you risk losing whatever aid you get (so is it worth it?)</p>

16

<p>The amounts you put on the FAFSA are the amounts IN THE ACCOUNTS on the day you file the FAFSA (and NO....you can't stuff your mattress that day and then put the money back. That is fraud). If you have spent $700 then that money is no longer in your account. Just curious....what exactly cost you $700 in applications and "tests"? Dress....why are you trying to cheat the system? This really is something that is not honest. As I said earlier, the need based finaid system is for students who do not have the money to attend college otherwise. These students are often getting waivers for college ap fees. I'm sorry, but at this point, you are sounding like a selfish "me, me me" person with an expectation that you are entitled to some money because you have earned some money. Feel fortunate that you HAVE some money instead of trying to try to figure out a way to skirt spending it. Each year on this site, there are at least a couple of threads dealing with folks who want to "hide their assets" so they can get more aid. I'm sorry, but I just find this a very troubling attitude.</p>

17

<p>6 APs at $80 dollars each, 4 $30 SAT and ACT test fees, a bunch of apps around $60 each, sending scores...you know, it all adds up...</p>

18

<p>I just wanted to jump in here to say that I for one agree with the OP.</p>

19

<p>Sorry, but if you think it is a waste of your hard earned money to go to college, maybe you shouldn't go.</p>

20

<p>No, but I do think it's a waste that I should have to spend the money I've saved, when my friends spent it on clothes and don't have to spend it on college. FWIW, I've been working since I was 14 and putting half of everything I make into my bank account.</p>