<p>Does anyone know how the amount in these accounts affects the EFC on the FAFSA? We don't have much in our checking account...but we have an emergency fund savings account for car repairs, home repairs, etc. which I feel should not be considered any kind of asset for college expenses (it's only around $7,000.00) and our income is very middle of the road. If I come clean and declare this savings account money, will it substantially up my son's EFC?</p>
<p>It's not optional to report savings account balances on the FAFSA.
We have a similiar 'old car repair, old roof on old house is leaking' fund with a very few thousand dollars in it.<br>
Our son's college probably sees it as book money for next semester. Oh well. </p>
<p>Money is parents' names is assessed at much lower rate than in student's name. Don't see that an account as you describe will up your family's EFC significantly.</p>
<p>All savings accounts, regardless of their purpose, must be reported on the FAFSA. The only "account" balances that do not get reported are balances IN your IRA's or TSA's (retirement accounts). If you have regular savings or CDs that you have the intention of using for something special, that doesn't matter at all to the FAFSA calculation. These are considered assets.</p>
<p>Parental assets are assessed at about 5.8% or something like that. (Feel free to correct me - I can't remember the exact figure...) We all have accounts like that - except mine is earmarked for taxes. If the roof gives out, I'm going to have to sell a kidney. ;) Do the right thing and declare it all.</p>
<p>Thanks for all the advice. I will certainly declare it... if it's in the account when I fill out the FAFSA. My main question was how much it impacts the final EFC. Anxiousmom's 5.8% figure was helpful. Thanks again.</p>
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<blockquote> <p>if it's in the account when I fill out the FAFSA>></p> </blockquote>
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<p>The only way not to declare it is to spend it. That line is for all assets including cash.</p>
<p>I think there is a baseline amount that is not counted and anything above that amount is assessed at 5% or 6%. Does anyone know what that "safe" amount is?</p>
<p>There is an "asset protection allowance" that is variable based on marital status and age. Table A5.</p>
<p>Page 19 of the EFC formula guide shows the asset protection allowances. They are based on how many parents there are and the oldest parents age.</p>
<p>Yeah-- these relatively small amounts-- 7K, won't exceed the asset protection allowance, and won't contribute to the EFC at all. For most two-parent families, the allowance is in the 45K range, so many will have no FAFSA contribution from parental assets at all.</p>
<p>So don't spend time trying to manage or "pay down" amounts under your allowance.</p>
<p>Student assets are a different matter-- no asset protection allowance at all.</p>
<p>Great - just checked back here and will go ahead and keep my emergency money and hope for the best. We are a family of 3 (Dad is 54 and Mom is 57), and our income was only $50k this year - so for a state school, probably won't impact us much one way or the other. Thanks for the help.</p>