<p>If the money in my bank account is from school loans i got this semester do i have to report it on the fafsa. I have 8k for this semester in my bank account, all of it came from loans. There is some other money in there but it is temporarily in there for bills. </p>
<p>If i say i have like `10k in my bank account i am sure my EFC will go sky high but it is borrowed money.</p>
<p>i also have same question but as a parent. we have money in bank accounts that came from loans. that would be considered assets minus debts, right?</p>
<p>Actually they are two different questions with two different answers.
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If the money in my bank account is from school loans i got this semester do i have to report it on the fafsa. I have 8k for this semester in my bank account, all of it came from loans. There is some other money in there but it is temporarily in there for bills.
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Money that is in the bank from financial aid loans, reimbursement of excess grants etc, from the school is not included as a student asset. </p>
<p>
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Student Asset Information Questions 41. Total current balance of cash, savings, and checking accounts. Include the balance of your (and your spouse's) savings and checking accounts as of the date the FAFSA is completed. Do not include student financial aid.
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Other money that is there from other sources is reportable even if it is there temporarily to pay bills. Most of us could say the money in their bank is there temporarily to pay bills - I know mine is - I still have to report it on FAFSA. So I pay as many of my bills as I can before I file FAFSA </p>
<p>
[quote]
we have money in bank accounts that came from loans. that would be considered assets minus debts, right?
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</p>
<p>Not unless it is from student loans. Money in the bank from any other sort of loan is included as an asset so it is important to time filing FAFSA to before you get a loan or after you have used the loan to pay for what you have borrowed it for. </p>
<p>The only debt you can include for FAFSA is debt that actually directly reduces the value of a reportable asset. For instance if you have a margin loan against a stock account then the reportable value of the stock account is the stock value less the margin account, because that is the actual value of the stock account. Or if you have a mortgage against a second home then the reportable value of the second home is it's value less the mortgage. Any other debt, such as credit card or auto loans or money borrowed to fix the roof is not reportable on FAFSA.</p>