<p>What do you do with a check of financial aid money after the grants pays for the classes?
Today i recieved a check from financial aid at my INstituition.
The pell grant which gives 2,823.00$, and the universities own grant which gives 2,736.00, totaling 5,559.00.
After classes which cost 3,225.00$.
And the remaining amount is the financial aid i recieved. the check is about 2334$. My question is what do i do with this check? Do i give it to the financial aid office so they can add it to next semesters costs? oR WHERE DOES THE FINANCIAL AID CHECKS GO>?
This is my first time getting financial aid.</p>
<p>THe monies will be disbursed to you. It is to be used for school associated expenses (including perhaps holding on to some money so that you can have start up cost for the spring semester). Keep in mind, that dropping failing classes can put you in trouble with meeting SAP (satisfactory academic progress) and getting future aid.</p>
<p>So, do your best work and don’t be afraid to seek help if you need it and have a great fist semester.</p>
<p>I am well aware that if failing classes or withdrawing is alot more troublesome for financial holders, than for other tuition students. Basically i am aware that financial aid puts you on the spot, forces you not to drop classes. Im well aware of the fail=pay back tuition cost, that what i was afraid initially.
Say if i want to pay for next semester, can i use the check to cover some of the costs?
Also is “new” money awarded each semester or its, disbursed just once per financial aid year?</p>
<p>you have received aid for the fall semester If you are a full time student for the spring semester, you will get a disbursement for the spring.</p>
<p>It is your money to use for food, accommodation, and other expenses. If you were living on campus, it would have been applied to room and board but as you are not, it has been disbursed to you. </p>
<p>Aid is disbursed by semester, so you will likely receive the same or similar next semester.</p>
<p>Keep in mind that any grants/scholarships in excess of qualified education expenses (basically tuition/fees/required books) is taxable income to you. If your income for the year including the excess scholarships/grants exceeds your standard deduction (around $6100 for 2013), you will need to file a tax return.</p>
<p>It’s your money. You will likely (if you meet SAP standards) receive another $2,300 check in January/February.</p>
<p>Would the check i recieved count as “extra and taxable” income, hence the financial aid. also if i were to buy something, how would i use the check, this may sound stupid. school-related stuff of course. How would i “cash” in a check? I dont have a bank account as well.</p>
<p>If this money is in excess of costs for allowable expenses (tuition, books, fees), it will be taxable income.</p>
<p>You should open a bank account.</p>
<p>Do you have unpaid expenses related to your college attendance? If so, use this refund check to lay those costs. If not, put it in the bank…and save it for when you DO have college related expenses.</p>
<p>You seem to be referring to the check as the financial aid. The amount that is credited to your account plus the check is all financial aid.</p>
<p>I agree, open a bank account. A college student should have one.</p>
<p>As for the taxable amount, add up all the financial aid, both the check and the amount applied to your school account. If any of it is from loans, don’t include that. Then subtract out the amount that went toward tuition, mandatory fees and required books and supplies. Keep receipts for any books you buy. The result of that subraction is the amount that is taxable income to you. However, for 2013 if that amount plus all your other income is less than $6100 you won’t have to file a tax return and won’t owe any tax. If you had any tax withheld from a job during 2013 you will want to file a return to get that amount back.</p>
<p>Very quick response, and very helpful. Yes i am referring the check as FA, because i got tired of saying financial aid check all the time.
Can you clarify what do you meant excess in costs. The total classes cost is 3225$ and the check disbursed the remaining 2234$. Would this mean i have 2234 in excess of costs?
i dont have a job either, my book fees are being paid by my dad, because the books are cheaper online, most of them anyways.
i will look into getting an bank account. I would rather use this to pay for classes, as its so much more expensive than the books.</p>
<p>Has your financial aid already PAID for your classes? You should only be getting a refund for any excess that you do not owe the college for tuition. Your are then able to use that excess for living expenses. If you are living with your parents and really don’t have any “living expenses”, then by all means, put that refund check in the bank.</p>
<p>What are your total tuition, fees and book costs? Any financial aid (loans, grants or anything) in excess of that total will be considered taxable income for the year. BUT you will only have the portion for fall 2013 so may not even reach the threshold for filing taxes for 2013.</p>
<p>The refund check being sent to you is because your costs to the college have been paid already…but you need to check to make sure. As noted, assuming you are still enrolled in good standing, you will get the same award next term.</p>
<p>If this is really “extra” money for you, then put it in the bank…and save it for college costs. It is possible that in future years, you won’t get as much grant aid.</p>
<p>OR save the money, and then in future years, use that money instead of taking out a loan.</p>
<p>Money in excess of costs for allowable expenses = total amount of free money FA - tuition, mandatory fees and required books and supplies. In your case it would seem $2234 minus the cost of required books and supplies is the excess in costs.</p>
<p>Doesn’t matter if your Dad pays for the books. That amount is still a qualified expense and not taxable to you. Since you don’t have other income and the taxable amount of FA is small it seems you don’t have to worry about this for tax year 2013. For tax year 2014 though, you’ll have two semesters of FA and if you get a job there will be that income too. Your dad should keep receipts for all book purchases.</p>
<p>i keep seeing 6100$ as the taxable income limit, is this the one you are referring to for FA?</p>
<p>“The refund check being sent to you is because your costs to the college have been paid already…but you need to check to make sure.” yes the fa already paid for the classes, and my account on the school site, has a financial statement stating how much it costed.
HYpothetically in case i do need to file a tax return form, do i put down “financial aid for UNIV”?</p>
<p>That FA check can be used for books, your computer, school supplies, transportation to school, room and board. Keep all receipts, even the receipt your dad uses for your books.
That can be used as well. Did you take any school loans out? Because that amount is not considered income and therefore does not count towards taxable income.<br>
Do open a checking account and deposit it, this is your money and get a debit card and pay with it so you can have an easier way of recording your school expenses.</p>
<p>For 2013, $6100 is the standard deduction for a single taxpayer. Most likely your parents will still claim you as a dependent so they get your personal exemption, not you. In most cases that works out best tax wise for the family as a whole. So if your taxable income from work, interest, dividends etc. and taxable grants/scholarships is less than $6100 you don’t need to file a return and won’t owe any tax. As I said, for 2013 with only 1 semester of aid and since you didn’t work, you shouldn’t have to file. For 2014 you may need to depending on if you work and the numbers. If you do need to file the tax owed should be a very small amount.</p>
<p>The details for taxable grants/scholarships are in chapter 1 of IRS pub 970:</p>
<p><a href=“http://www.irs.gov/pub/irs-pdf/p970.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p970.pdf</a></p>
<p>Page 6 in the link under “How To Report” shows how you would show the amount from taxable scholarships/grants depending on which form you file. If you would need to file you should be able to use form 1040EZ.</p>
<p>You can use the check for the things milkandsugar suggested, but only the amount spent on books and required supplies in addition to tuition and fees are non-taxable. The supplies would be required things like art supplies for an art class or chemistry goggles, not general supplies like notebooks, pencils etc. So keep receipts for books and required supplies. Aid spent on a computer is only non-taxable if the school requires the purchase of a computer by all students in your program. Usually that is not the case. Transportation and R&B are not qualified expenses for tax purposes.</p>
<p>@milk and sugar, i never took out a loan, and i never will. I have seen people go into debt over this, and tries to join the military to pay off the debt, theres alot that currently do. i know the consequences of taking out loans are, When i was in HS, one of my teachers was still paying loans to the university she graduated from, she said it would take 48 years to repay all of it.
@ annoyingdad, i am not an dependent, i tried when i was a depedant, but my families income was too “high” so i couldnt qualify for fa, but loans. Also i wasnt qualified because i was already over 90 units at my ccsf.
i was able to get fa, because i am 25 years old. All the supplies i need i already have at home, and most of the previous semester had the same supplies i would be using now anyways. i never buy new supplies unless i dont have something that is needed. i got so many chem goggles, i dont need to buy any. I only use public transportation, having a car just add in more financial liability(i would need insurance, car maitenance, accident liabilities,tickets,etc)</p>
<p>The rules for being dependent for taxes and finaid are different and independent of each other. But if your parents can’t claim you as a dependent on their tax return, then you can have income, including taxable scholarships/grants, up to $10000 for 2013 before you would need to file a return or owe tax.</p>
<p>Grants…since you are 25 years old, you are independent for financial aid purposes.</p>
<p>I really strongly suggest opening a bank account. See if you can open a student account some place where there will be no fees. You might want to check the credit unions in your area. Then put that refund in the bank to use for educational expenses as they come up.</p>