Need help with FAFSA... sort of please

Colleges and Universities A-Z University of Michigan
1

<p>Hey so originally on the FAFSA, I had put "off-campus." As a result, I got a good portion for that. However, I may live with my parents (I asked them before and they had told me to just put off-campus if I was not sure yet). Now, I will be paying rent, believe it or not (I insisted). However, i can only do this if I still get the money. To summarize, will I still get the money even if I live with my parents so I could, in turn, use that money to pay rent to my parents and for gas money to commute to Ann Arbor (like 30-40 miles one way).</p>

<p>Btw, I have tried talking to them but they do not really seem sure. Does anybody have any past experience with a situation at least similar to this (you got money from FAFSA for "off-campus" but ended up living with your parents?</p>

<p>Please let me know. Thanks. I would really appreciate it.</p>

2

<p>i dont think they check. Do they reduce $ if you live at home? Just mark off campus</p>

3

<p>I’m assuming they do but I did mark off campus when I did it earlier in the year since I wasnt sure at the time. Anyone know for sure? Also did anyone have have left ver money from FAFSA? How do you get it? Is it by check or something?</p>

4

<p>The university refunds you any money left over after its billing of your tuition, and if you lived in residence, residence and meal plan fees. So if your total award package exceeds those costs, you get either a check or a direct deposit to a bank account you set up for such a purpose.You usually don’t receive that money until after the first tuition billing and you do have to “tell” them to refund the excess (or they just hold it as a positive balance in your U. account for future tuition charges, etc.)</p>

<p>However, I’m a little confused. You’d borrow money that you have to pay back at 6.5% in order to pay your parents rent???</p>

<p>FAFSA - as in federal aid, would not give you more than $5500 in GRANT (aka FREE) money IF your EFC were zero. If the university itself gives you GRANT money in your aid package, they might be interested in knowing where you’d be living, I’m afraid. </p>

<p>Usually, a financial aid package is made up of a portion of fed loans, subsidized meaning you don’t have to pay the interest while in school, and unsubsidized, meaning interest accrues while you’re in school. The total of these fed loans for a freshman used to be $5,500 (might be $6,500 now.) So I suspect the part of the package you’d be using to pay rent to begin with would be the part that you are actually BORROWING yourself, that you have to pay back with interest no matter what, even if you were ever to file bankruptcy.</p>

<p>Now, if you’re talking about a MERIT scholarship – no one cares how you spend it, though if it’s not spent on direct ed expenses such as tuition and books, you could end up paying income tax on it (living expenses do not count.)</p>

<p>So, if you’re being financially prudent and choosing to live at home, you should maybe consider going one step further and DECLINE ANY LOANS you don’t need instead of using that money to pay your folks rent. Keep what you need for legitimate commuting expenses. </p>

<p>Hope that’s all clear to you. Best wishes!</p>