I am in a bit of a predicament…
I’m going to a private college ($46,000/year), and I have received alot of scholarships, grants, etc… My family EFC is $0, and I have been saving money for college. The way I am set through various external scholarships, I will come out of college debt-free with no loans.
Of course, this is great, but I would also like to begin investing in the stock market. Although, I’m very confused and wary of doing so in case it hurts my financial aid… I have saved up nearly $13,000 (in cash) and would really like to begin investing. I can’t just leave $13,000 in cash at home or in my dorm room at college, and I can’t necessarily put it in the bank (in fear of FAFSA seeing it). I don’t have anywhere to put the money. Is there a way I can begin investing without alerting FAFSA and losing Financial aid because I ‘have money’? Over the last year, I made over $150,000 on virtual stock training applications. Perhaps I can open some kind of custodial account under a grandparent? (If that is a possible thing?)
I also plan on obtaining a doctorate, so I can’t just wait until I’m all done with college.
Thank you for helping me navigate through this questionable problem!
Does your school only require the FAFSA, or is the CSS Profile required as well?
If only the FAFSA is required, check if you are eligible for auto zero efc or simplified needs test. If so, student income and assets are not considered, and you could safely do what you wanted with your money without consequences to your financial aid.
Only FAFSA was required. Do you mind explaining this whole ‘auto zero efc’ thing?
By the way, my mom filed out my FAFSA for me.
“(in fear of FAFSA seeing it)”
Does this mean you intend to lie about your available resources?
ETA: Or you already did?
I don’t intend to do anything illegal or unethical - my mother filled out the paperwork on my FAFSA, I don’t know if I’m ‘auto efc’.
For the record, if you have 13,000 and did not list it as a student asset on FAFSA, it’s technically fraud. It’s also technically fraud if you continue to keep it under your bed and choose not report it. No one will ever find out, and you/your mother may have made an honest mistake, but it is still fraud. Just something to think about.
I’m pretty sure you have to report cash in financial aid applications.
“my mother filled out the paperwork on my FAFSA…”
Doesn’t the FAFSA have a section that the student is required to sign?
I seem to recall one.
I think it’s directly next to the part that says;
“If you are the parent or the student, by signing this application you certify that all of the information you provided is true and complete to the best of your knowledge… If you purposely give false or misleading information, you may be fined up to $20,000, sent to prison, or both.”
As mentioned in the other thread, I sat down and discussed this with my parents - we have auto EFC.
Okay, so why is it an issue if the FAFSA sees your bank account?
I thought it was an issue prior to finding out that I’m auto efc