Loan disbursement an asset on FAFSA?

Paying for College
1

<p>Asking this for a friend who is not on the internet (EEK!!??):</p>

<p>Son is a sophomore in college. This year he is living off campus. He just got a loan disbursement which is sitting in his checking account for living expenses for the spring semester (rent).</p>

<p>Mom is concerned about whether or not this is considered an asset.</p>

<p>My thought is that since is not 'his money' and actually a loan being used to pay for the current school year, it is not an asset.</p>

<p>The FAFSA hotline was confused, but then eventually told her to put it as an asset. I have found the FAFSA hotline to be wrong much of the time, so I figured I'd check here to see what others think.</p>

<p>Thoughts?</p>

2

<p>Money in the account that comes from financial aid is not counted in student assets.</p>

3

<p>Thank you!! That’s what I thought, I think I remember reading it here. I’ll tell my friend - I’m sure she’ll be relieved.</p>

4

<p>So then its not counted as an asset?</p>

5

<p>Reread post #2. It is not. Kelsmom knows.</p>

6

<p>When you are filling out the fafsa online click inside the box that asks for students assets and then read the instructions over to the right- it very clearly states not to include FA as student assets.</p>