Money Question.

<p>I am a junior who is 3 weeks into the 2nd semester. If i open a bank account, put money in it monthly till i have A certain amount of $ in it by july (summer vacation of this year before senior year starts) then i close it. Will it affect me me receiving financial aid when i apply to colleges?</p>

<p>Basically Open Bank account > put money > Close it > Senior Year starts.</p>

<p>Affects Aid?</p>

<p>What are you going to do with the money in July? Take the cash and stuff it under your mattress? Affects aid = YES, you need to report cash as an asset.</p>

<p>Take the cash and buy a car? Affects aid = NO, cars aren't reported as assets (on FAFSA).</p>

<p>So, we don't have enough information to answer your question, yet :)</p>

<p>oh sorry Vball mom for forgetting to say that lol :)</p>

<p>I'm going to buy a car with it in july. </p>

<p>So it will NOT affect Aid?</p>

<p>money earned in 2008 will be used to calculate your EFC when you file it in January 2009. your EFC is calculated based on income and assets of both parents and students.</p>

<p>Students are allowed an income protection allowance of approximately $3000 -- after that, you will be expected to contribute the majority of your income to paying for college. </p>

<p>Student assets are a different matter -- you don't get any asset protection allowance and the school also expects assets to be used for school.</p>

<p>So -- if you earn less than $3000, your income will not effect your EFC. If that money if no longer in the form of a liquid asset (like cash, stocks, etc) and you used it to purchase a car, it will not effect your EFC.</p>