When I had first filled out my FAFSA, I had my sister do much of the work for me. When she asked my mom if their assets exceeded ~7000, my mom said that their assets didn’t and so we said no and we didn’t have to deal with putting in assets and investments. I was selected for verification, and the Financial Aid Office is asking for the exact amount for assets and investments. Now I know they straight up lied. They apparently got a huge check from a friend ~$30,000, and they had it in the bank for a while. I’m guessing that we will still have to report this. Now that I have to verify my FAFSA, my parents are still pressuring me to put less than $7000. Please tell me how I can scare my parents into telling me the right amount of money. They keep lecturing me how their friends’ kids put a low amount and how they did they same with my older siblings. They were never selected for verification, and didn’t have to deal with this. I don’t want to lie on the FAFSA, but now my idiotic family keep yelling at me to put $0 and a low amount for assets so that our EFC will be low. I know the financial aid office will check. AND ALSO, I just learning this today that apparently they have around ~$200,000 worth of stock, and even then they are still convinced to lie by putting $0 (SO FRUSTRATING), I don’t want to. My parents are good people, and I don’t want them to be caught for fraud and potentially sent to jail. But I just don’t know how to convince into telling me the actual amount.
Now that I am done with that, since the assets that I reported on the FAFSA was higher than $7000, will I just be caught for lying or can I fixed this by putting a higher amount for verification of my FAFSA. Since like I said, on the FAFSA my sister selected the option that our assets was less than $7000, and now that I know it was more I’m planning on putting the actual amount which probably is way higher. Another question is if I have a CD under my name, will that count as parent or student investments? I am only 17 (not 17 1/2 yet if that matters) and I don’t know if it counts as student or parent. This CD is around ~$1000 and my parents put it in like 7 years ago. I totally forgot about this I have to admit this mistake though. Also can you guys also give my insight on how the FAFSA will verify the assets? Will they ask for bank statements? How will they check this CD that is under my name? And also how will they verify the net worth of my parent’s investment? Also, will I have to put the net worth and assets on the day the FAFSA was filed or right now? Thank you
my guess is the stock is in a 401k or something that fafsa does not care about, the 30k is a different story, it really depends on what schools you apply to, but a low efc will not help you with many schools , sad but true. what schools are you looking at, and if your parents got a check from friend for 30k my guess is they are not able to pitch in a lot for college right now.I would have a chat w them to see how much they plan of helping you.
@Eeyore123@NJdad07090 it’s not in a 401k I know that for a fact, but I don’t know where they have this money. They will never let me look at their stocks so I don’t know where it is stored and I can’t put it on my FAFSA without knowing a good estimation. We have been low income almost all my life, so I understand why my parents want a lower EFC, but they are so uptight about this issue that I really can’t get any information out of them. I have been arguing with them for several days now, and they won’t share the information because they don’t trust me at all. I know they have invested in a couple of healthcare stocks, and they have been investing for a very long time so it’s very confusing to me. We only have our 2018 tax return at the moment, which does not show anything about stocks. This loan they got was from a very good friend who is a retired teacher for 40+ years. I just want to know a way I can force them into telling me. I know if I put incorrect information, I won’t get any financial aid. I just want to know what documents the financial aid office will request regarding my parents’ assets and investments so I can try to force them into telling me.
The financial aid office will tell you what documents, they are interested in seeing for verification, starting with tax returns.
Amending FAFSA apps for correction is not unusual.
If they truly have 200k in stocks they should have reported Capital Gains in their taxes. If they did not Report then they committed tax fraud. If you do not disclose the 200k in FAFSA then you are committing fraud. I can almost guarantee the investment firm has reported these gains ( or losses) to the IRS.
I don’t think you’re in danger of going to jail, and your parents probably aren’t either. If the numbers don’t add up, it’s more likely you’ll simply be denied the money. I don’t think colleges are in the habit of filing charges against people who lie on these forms. It probably happens a lot.
Do your parents understand what this verification process is? If not, make sure they read about it. Explain why you can’t put in false numbers. Or, don’t submit FAFSA. Then you will pay full tuition, barring any merit awards.
Ok, thanks for pointing that out. I still don’t think it’s terribly common though that colleges file charges against people who lie on FAFSA forms. I don’t know though. If others have more knowledge that this happens, let the OP know.
I think it’s clear that lying on those forms isn’t a good idea, and I don’t think OP is in danger of going to prison.
If the stocks are held at the time that FAFSA is filed and they aren’t in a qualified retirement plan, the value on the day of the filing should be reported under question 41 (if a student investment) and/or question 89 (if a parent investment).
i could be wrong, but i don’t think anyone is able to see your stock assets if you don’t sell. the only way a financial aid officer will be able to tell you have stocks is if they received dividends from the stocks. so as long as your parents don’t sell while you are in school they could get away with it. but, you would know at the end of the day and that will be with you for the rest of your life. if your parents won’t tell the truth, then you’ll have to stand your ground.
Again I ask…would you qualify for need based aid anyway? This is mostly determined using income. Assets add to it. But income is in the driver’s seat. If your parent income is above a certain amount you might not get much aid anyway…if any. If your college doesn’t meet full need for all, same.
And re:your thread title…FAFSA doesn’t check any of this. But the college awarding you need based aid is already asking, right? The info gets sent to the colleges.
Why are they borrowing 30K from a friend if they have 200K in stocks? Did they USE the 30K or they borrowed it just to sit in their checking account for some reason?
@gruebleen assets can play a part…but without knowing this student’s family income…it’s hard to say. It very well could be that he doesn’t qualify for need based aid…anyway.
@TheDoge the student would have issues if he received need based aid when he knowingly put false info on the FAFSA.
This could result in him having to pay back any aid he wrongly received. He could be fined. Most likely he won’t end up in jail. But lying on the FAFSA is considered fraud. Perhaps the parents should look up “fraud” in a dictionary.
Depending on their income, assets might not even have a bearing on this. If income is really high he might not qualify for need based aid anyhow and if income is low enough all assets could be excluded so it might not even matter, but OP hasn’t answered the income question.