<p>I underreported. I have a college fund that I didn't know about that has about 8000 in it. Previously my dad claimed it as his assets and 1099 div forms came under his name. However I guess the account is officially mine as of this year since the form came under my name. I didn't know about this when I filled out my fafsa and since I was selected for verification I have changed the amount to include the 8000 or so. What's going to happen to me? I'm scared to death I could face penalties or have my fin aid canceled. This was an honest mistake but I'm so worried...</p>
<p>What kind of college account was it? If a 529, I thought that the FAFSA formula counted those as a parent asset even if in the student name.</p>
<p>I’m guessing NO one included that $8000 asset, is that correct?</p>
<p>I think it’s called an ULTRA or something like that account. My dad was managing the account but yes this year it wasn’t reported at all. That’s when I realized the error, when I was doing the verification papers with him. I haven’t sent them in yet and I’m very nervous as to what will happen.</p>
<p>What was your FAFSA EFC? Depending on that, and your school policy for awarding aid, this might not make a difference at all.</p>
<p>I think it was like 2400 or so. There are 5 of us in the family on 50000 a yr. I made 5700 last year which I’ve saved most of for college. The school is Uc Berkeley and they estimated 9460 net cost per year. I can afford an increase and recognize they might reduce aid but I can’t hope to afford school on significantly lower help. </p>
<p>Are you instate for UCB? Was most of your aid Calgrant money?</p>
<p>I’m an instate transfer from a CC and they didn’t have anything for state aid. However some Uc schools did and some did not. The cal grant was just approved for 12k so I was expecting them to remove that from what they were offering. </p>
<p>I think you should be OK as long as you weren’t already on the border for Cal grant asset ceilings. You make the income ceiling easily. Do you happen to know what the total assets reported? Basically, if it’s still under 67K with the forgotten 8K you should be alright. </p>
<p><a href=“http://www.csac.ca.gov/facts/2014-15_income_ceilings_new_apps_renewing_recips.pdf”>http://www.csac.ca.gov/facts/2014-15_income_ceilings_new_apps_renewing_recips.pdf</a></p>
<p>Including my assets its about 20k to 25k</p>
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<p>Maybe UTMA or UGMA? This would be reported as a student asset on FAFSA, unless it’s a 529 account, in which case it would be reported as a parent asset.</p>
<p>You won’t be penalized, but you need to make the correction.</p>
<p>Then, if the funds really are now in your name, open a 529 college savings account ASAP and transfer the funds to that account. (When you open the account, you’ll list yourself as both owner and beneficiary, assuming you are now over the age of 18.) It won’t help you for this year’s FAFSA, but in future years, all funds in the 529 account will get listed as a parent asset. (Yes, really - a parent asset, even though it’s your money!)</p>
<p>^^^
Be careful, though, as there may be negative tax implications based on how the current assets are invested. 529 plans can only take cash contributions, so if the current assets are in non-cash form (stocks, mutual funds, etc.), those assets would have to be liquidated before investing in a 529 plan. Depending on several factors, this may mean a capital gains tax hit.</p>