<p>Hi, I would appreciate some advice concerning financial aid and inheritance. I am currently finishing my first year as a transfer student at an expensive private university. I had previously attended a community college, and was being helped financially by my only legal guardian. Last spring I sent out applications to 4-year schools and filled out my FAFSA and CSS PROFILE based on what was true at the time: my legal guardian was alive and living off of a fixed income. Over the summer my LG passed away. At the same time I was offered admission to my current school and given a large grant and a few loans to cover my tuition. I knew I had some inheritance eventually coming my way from the sale of my LG’s house, but I was not sure when I would be receiving it. In August, my LG’s assets were put into a family trust, and I was named one of the beneficiaries, but was not able to touch most of the money because my LG’s medical bills were still outstanding. Well, my LG’s insurance company surprisingly decided to cover almost the entirety of his medical bills and I found that my portion of the inheritance totaled a lot more than I was originally expecting. I was given the bulk of this money last month, which brings me to my current dilemma: I feel as though I have done something wrong by accepting grants from my school last summer. I feel extremely guilty about this money. My family thinks this is crazy because this is likely to be the only large sum of money I will receive in my life. My financial aid officer does not seem to think there is a problem because these grants were based on my 2010 income and has told me that I will not need to repay the school, but that just doesn’t seem right. I plan on transferring to much cheaper public school after this semester, and using my money to fund the rest of my education without aid and repay my current student loans. But have I done anything legally wrong by accepting this money? Has anyone ever heard of having to repay grants because of a situation like this?</p>
<p>As long as you followed the rules, there is nothing to feel guilty about. At the time you received the aid, you didn’t have access to the money.</p>
<p>Just say many, many prayers of thanks to the LG – this is one of the rare times when you did everything right and landed in the gravy. </p>
<p>Live lightly and carefully – there are inevitably will be times when you do everything right and will land in the ditch. Life has no guarantees. </p>
<p>The key to your inner relief is in the words of your financial aid officer. If he/she is fine, trust that all truly is fine. You have been honest and all is well. </p>
<p>I’d say go ahead and work through the rest of your degree. If there is money left over at the end of the process (and you have secured a job) you can decide then if you would like to pass on some dollars to help another worthy student. Giving back is a good thing for hearts and souls – but please take care of yourself first. Earn the degree. Then give happily. Good luck!</p>
<p>don’t feel guilty … assuming you have more years to go after this one the money from the inheritance (or at least you’re increase asset level) will be considered in future years … the schools will get theirs from the money. In fact, I’d suggest you do some research to see how to legally minimize the hit you will take next year because of the inheritance (pay off any loans you have, pay off any credit card debt, buy the new laptop you need, etc).</p>
<p>Does the FAFSA count it as income? I don’t think the IRS does…there may be inheritance or estate tax, but I don’t think income. So then it just becomes assets correct? I know parents assets have a certain protection % and the students usually don’t. But if you have no guardian or parent does that change? I mean will the OP assets be treated like the avg student who has parents/guardians, or will they be tapped at a lower %?</p>
<p>I think you wouldn’t feel so weird about it if the aid wasn’t given out the year AFTER the income reported to qualify. You DID qualify under the rules despite getting the $ during the year it paid for. The opposite also happens where people don’t get aid due to high income, then the year the aid would be paid out, the income is lower. Does that make sense.</p>
<p>The advice to pay off debt is good, because then you have less cash assets left to report.</p>
<p>It is interesting to note that when it’s your money that is being spent you want to become more frugal with tuition. I’m not saying there’s anything wrong with taking grants when you truthfully qualify for them, I’m sort of trying to point out that this poster shows that there ARE other options for those who whine when they don’t get grants and can’t go to their first choice school.</p>
<p>I am glad the OP is being smart and not planning to spend all her $ on the private school. Who knows though, maybe a good portion of the grants will remain. Getting the best grades you can this semester certainly won’t hurt. Good luck.</p>
<p>You did nothing wrong by accepting grants from your school last summer because you didn’t know you would get such a large amount of money.
You should not feel extremely guilty about this money. If you turn down grants from now on and use your own money, which you can do, you can end up without money when your future children want to go to college, when you want to stop working and retire and be with your spouse, and when you need to go on Social Security and Medicare. Then you will look back with both guilt and regret.
You have done nothing legally wrong by accepting this money.
You will not have to repay grants because of a situation like this.
Note that in your FAFSA you will fill out January 1, 2013 for the 2013-2014 school year, you will reporting this money to them for the first time. They will adjust money for you for that school year accordingly.
With that amount of money, find a good financial planner and invest it wisely.</p>
<p>Thank you all very much for the advice. I found it helpful and comforting. </p>
<p>PS Does anyone know if there is a way I could edit my original post? I’m starting to regret listing actual dollar amounts online.</p>