@thumper1 What do you mean the day FASFA is filled? Do they look in my account?
One of the questions on FAFSA asks how much money you have in savings and checking accounts. You are supposed to tell the truth and base your answer on the time you are filling out the form. If you fill it out on Oct. 15 and have X amount in your accounts on that date, put in X amount. If you don’t submit it until Nov. 1 and in the meantime have spent some money from the accounts, change the amount to reflect what is in there when you submit.
@rosered55 Ok thanks, yes I was honest about it. I disclosed the amount from the grandparents 529. I didn’t know the other grandparent would contribute until months later. How do they know that people tell the truth? There could be very rich people who say they have much less?
People lie to the government all the time. Your neighbor owns a restaurant and has an “income” of 45K but is taking home another 100K in cash. Your friend gets “zero” in child support, but the ex-husband hands her $500 in twenty dollar bills every Sunday when he picks the kids up for supper.
Sometimes they get caught and sometimes they don’t.
It shouldn’t be an issue, if you pay the bill in August, and file FAFSA in October.
The grandparent owned 529 does not have to be reported as your asset. Only if they pay money on behalf of the student, then that would be reported on a future FAFSA. At least that is my understanding.
Be honest…as you were. Getting financial aid using knowingly false information is FRAUD…which is a crime. The student would not only lose the aid, but would likely lose their admissions spot as well…and be fined.
Sure,there are dishonest folks out there…don’t be one of them.
But if the grandmother is paying $15k per year, and that is not disclosed, is that fraud?
I am not counting on the $14K a yr from the other grandmother, and won’t know until March, long after we do FASFA. So do I tell them and lose $14K/yr in aid cause then what is the point in her helping if the school knocks that amount off aid? It’s a wash right, so if a grandparent wants to help. it only penalizes us? That doesn’t seem right either. Or do I let her pay us instead of the school and just pay toward the balance?
If the grandmother gifts money to the MOM it,would,happen in 2017…and IF it needed to be reported…it,would,be on the 2019-2020 forms.
BUT I do think that the grandma can gift the money to the mom…who can then use itmto help paymthe college bills.
I do not believe gifts to the mom are reported on the fafsa. @mommdc ?
@thumper1, I don’t believe they are.
But if you’re not counting on the money from the grandma, how will you afford it?
At some point, you need to disclose it to the school, as a gift, not income. I suppose each school may have a different way of assessing the impact on financial aid
I’m not a tax expert…but gifts are NOT taxed for the recipient…and I don’t believe gifts are considered income of any kind.
So where would this go on a fafsa @mommdc ?? @Madison85 ??
Not an expert either. It’s certainly not considered taxable, but would be considered an asset
How would it be considered an asset if OP uses it to pay for school? It won’t be in her account when she completes the financial aid forms.
Yes, good questions! Anyone know about this? THANK YOU!
It would ONLY be a FAFSA asset if it is sitting in the OPs account the day she files the fafsa.
@cloudysmom I reported on our Profile that we were given money by my inlaws in 2015. I just received an email from Richmond asking me about that money and where it came from. So clearly they look at money given to you or money paid on your behalf from the Profile.
I am still not positive I filled the form out properly. I wish there was some more guidance on financial aid.
Where on the Profile does it ask for money gifts you have received?
@thumper1
PI-230A for 2015 and PR-115A for 2016.
@twoforone99 Thanks for letting me know. I reported $ from my parents on the CSS Profile & while they didn’t ask about it, the FA rep did tell me they considered it, and implied they ,ishtar have given us more aid if we weren’t getting that help.
I wish there were more guidance, too. My D wants to apply for outside scholarships but UR said that they needed to know about any scholarships & would reduce need based aid by that amount, so no point in even applying.