Hi, so I submitted my fafsa for 2015-2016 in late February. On the fafsa form, I put that I have a checking account with $1000. I received my financial aid package around May. Just recently, a family member gave me $1XXXX money to help support my college payments & to help my sister with her school needs. I was wondering if this would affect my financial aid in any way? That money is in my savings account right now. Any help would be appreciated!
No, assets are counted as of the day you file. If the money is still there next year when you file, you’d have to report it then as an asset.
Thank you so much. I feel relieved now.
Am I required to let them know that I have a savings account now? Or do I just wait until next year when I file it again
^ You only include it on FAFSA if the money’s still there/you haven’t spent it. Depending on how much you’ll be using for college, you’ll have to report what’s left.
If you’re using half for one semester and half for another; pay your 2nd semester bill early, before filing FAFSA so that you won’t have to include it. If you’re receiving a large amount of financial aid, you’ll just get a refund from the school (after you’ve filed the fafsa). Financial aid $ (from the refund) doesn’t count as an asset.
Fafsa gave me enough for tuition for both semesters so I’m not worried about that. But I am planning to use this money to pay for my dorm. Can you explain the last 2 sentences, I don’t really understand this refund thing.
You will have to add the money on to next years fafsa as monies paid by others on your behalf
^ Isn’t that if the other party pays the bill himself/herself?
"Can you explain the last 2 sentences, I don’t really understand this refund thing. "
You’re required to report how much $ is on your bank account on the day you file.
Thus, to avoid having to report the $ as cash/savings, you pay your bill before filing FAFSA. Make sure to do this as soon as the bill comes out, before grants are applied, so that you can pay the bill. Since you’ve paid the bill, when grants kick in you’ll get a refund. Since that money (the grants) is financial aid, you don’t have to report it.
I’ve seen this suggested before as a legit way to prevent the EFC from going up. Someone correct me if I’m wrong.