<p>I was hoping someone on here could help me out with this situation..</p>
<p>I will be transferring in the fall and will qualify for the blue and gold program because my family income is less than $80,000. I believe that means that I will be awarded enough money in grants and/or scholarships to pay for tuition and other school fees. </p>
<p>Recently, my grandma mentioned that she wants to give me some money to help pay for the rest of the costs (rent, utilities, food, etc) that won't be covered by the blue and gold plan. I don't know how much she plans to give me, but for the sake of my question let's say $10,000.</p>
<p>If she were to give me that $10,000 once I transfer, how would it affect my financial aid for the next year? Would I still qualify for the blue and gold program? Any insight into this would be greatly appreciated. Thanks for reading. </p>
<p>Don’t have extra money in your bank account when you’re filling out your FAFSA because you will be losing a large percentage of the money saved. As long as your grandmother pays you in cash, I don’t see any problems.</p>
<p>@bouncer, to clarify, you’re saying that if she were to pay me by transferring money into my bank account and I had money leftover at the end of the year, that would affect the amount I would be awarded the next year? But if she were to pay me in cash and I deposited it as needed, it wouldn’t be a problem?</p>
<p>In the Financial Aid & Scholarship Forum, several have suggested having the grandparent provide a private loan to grandchild at prime + 1% interest and then later forgive the loan upon graduation as a way to have grandparent provide money without affecting FAid. </p>
<p>@socaldad2 I see what you’re saying about getting the money after I file FAFSA so that it doesn’t affect my awards for that year, but how will that end up affecting the next years FAFSA I fill out? Wont I have to include the gifted money in the untaxed income section of the financial aid application? Sorry for all of the questions, I’m just trying to understand each different angle on this.</p>
<p>Under the tax law, gifts are not considered to be income. Of course, FAFSA could define income differently, but it does not define it at all. There have been discussions on CC about this. </p>
<p>Also, you mention having the gifts go to your parents. A good idea, since parents are only expected to pay about 5% of their assets toward college, while students are expected to pay around 20%.</p>
<p>Thank you for clarifying. I also posted this question on another forum and it seems like most people think that the best option would be to have the money gifted to my parents, and then have the parents disburse it to me when needed. According to some other users, fafsa doesn’t ask about gifted money to the PARENTS, only the students.</p>
<p>Just have them give you the money after you do your FAFSA. Then you can fill it out honestly. Don’t have them give it to your parents because you have to provide there financials also.</p>
<p>Bottom line is that I am wondering if there is a legal and legitimate way to earn the same amount of financial aid if my grandmother does end up helping me pay for college as well. If not, that is okay. I do not want to be jumping through any sketchy loopholes, I am just trying to utilize and take advantage of all the financial help my mom and I can get while still being honest.</p>
<p>FAFSA is a snap shot in time. All of your financial need is based on the day you fill it out. If you receive money after that date from a family member you are under no obligation to report it. </p>
<p>Lets say you report $10000 dollars in saving and FAFSA says you have a XXX EFC. Then you have a huge car repair or medical bill so you have only $5000 remaining. FAFSA will not adjust your EFC down. So in reverse if you receive a gift they do not adjust up. </p>
<p>If it were me I would have my grandma divide the gift into 4 equal parts and give you 1/4 each summer to spend on school for the next year. Make sure you spend the entire amount prior to filling out your next FAFSA which happens in the Jan-Mar time frame.</p>
<p>Thank you for your in depth response. I am still not completely clear on one thing. Since I have already filed FAFSA this year, I know that no amount of money I am gifted at this point will affect the financial aid amound I receive for the up coming fall quarter at whichever school I transfer to (I will be a junior transfer). But the thing I am not clear on is what I will report on fafsa next year (January 2015). If the money is gifted directly to me, will I have to report the full amount that I was given, or just the amount that I have left when it is time to fill out the fafsa again?</p>
