Question about savings, unique situation..

<p>LOL, kelsmom!</p>

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<p>I hope you do get an education, kid, cuz it may help you understand how little you know about life right now. Why would you assume you’ll have no liquid assets? Do you understand that 20% of the asset BALANCE each year is the amount that would go to your EFC? You’ve already said that you’re getting good FA so it sounds as if you already know what your awards are. Is the balance significantly more that your EFC? </p>

<p>I would think that being frugal and working to cover some personal expenses while you’re in school would be a good way to conserve or rebuild your savings. But I’m probably just a middle-aged idiot too…although I somehow managed to graduate from a good school along the way.</p>

<p>Why is it that some posters feel they should have the “right” to go to a top, expensive school and not have to pay a penny towards funding their own education? </p>

<p>It is admirable that you took time off to work and earn income, but since you did, it is reasonable that a school will expect you to pay for some of your education with earned income. That is totally reasonable. Insulting people who dont tell you what you want to hear-- now thats not reasonable.</p>

<p>behind the door if you have a door</p>

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<p>Now you have ME rolling on the floor laughing. Nope, no door. I work in a big, open area without walls … a bullpen of sorts. Sort of blows your idea of the luxurious working life of a financial aid officer, doesn’t it?!</p>

<p>There are these things called safe deposit boxes…</p>

<p>I use them often myself…</p>

<p>I hear professional gamblers and small businessmen use them frequently…</p>

<p>Draw your own conclusions. You think people give their last 2 cents to a college?</p>

<p>That isnt very bright for someone trying to start out in life without help from parents like so many at top schools.</p>

<p>Do what you feel is best…</p>

<p>zaxxs-
There are things called W-2’s and 1099’s that tell Uncle Sam how much you earned. He doesnt care where you stash it. You can keep it under your mattress if you wish. But he knows you have it.</p>

<p>He “knows” how much we all have? </p>

<p>In order for him to “know” that at a given time he would have to “know” are expenses. I dunno about you…but he doesnt “know” when I go shopping, buy things cash, pay rent cash, take a girl out, go to a casino…etc. etc.</p>

<p>Try again.</p>

<p>If you cant figure out from the thread that he didnt earn all that much…</p>

<p>And he MAY have say…spent it on rent/food/car repairs…whatever over a certain span of time…</p>

<p>Well…there are 2 economies folks.</p>

<p>Unles he earned under $600 its reported. If the money was earned under the table, he’d not be posting here as he would not be reporting it as income. You think what you are saying is some novel information?? Thats funny.</p>

<p>zaxx, I’m sure people can figure out all kinds of ways to game the system all by themselves. We try not to encourage them to do so because it’s unethical and illegal. If caught doing so, the penalties can far outweigh the benefits.</p>

<p>Yes, and what sk8rmom says goes without say. Taxable income is declared and documented and used to calculate EFC. If the student has spent their earned income, they take out a loan.
No more feeding this ■■■■■.</p>

<p>As far as behaving in any illegal manner, no one suggested he do anything of the like. I merely was informing the young man of a service provided at minimal cost at his local banking establishment. He may choose to explore those services with a banker or ignore the message; that is a matter entirely of his prerogative.</p>

<p>Whether the assets are in a deposit box or bank account, they’re still reportable. When you file FAFSA, you’re required to sign a statement certifying that the info you’re reporting is true and correct. People can and do cheat and some are caught, just as they are when defrauding any other government program. Then they’re required to pay back all of the aid they received illegally and there’s a huge fine for each offense. It’s not really that difficult to catch cheaters as the schools verify roughly 1 out of every 3 FAFSAs each year so it’s very likely that a student will be chosen for verification at least once - some posters have reported being verified every single year. When there doesn’t appear to be enough income or assets to support what is reported, additional forms and documents are required. FA offices will not, actually cannot, distribute any aid until they’re satisfied that the FAFSA was filed correctly. IMO, it’s just not worth it…yes he worked and saved, now he wants to get an education. It’s pitiful that he apparently doesn’t think that his education is worthy of an investment on his own part but otherwise why would he consider throwing an “epic party” instead of paying tuition? Schools are not going to automatically pony up more of their money just because a student has none.</p>

<p>Doesnt matter what he has “saved”. Its from his reportable income. ANd he will have an EFC based on that. Thats too bad if he spent it on booze and lottery tickets (JK).
Now please stop, zaxx. The insult has already been reported.</p>

<p>So they verify the information on your FAFSA is true by checking your returns and perhaps bank filings.</p>

<p>Sounds like anything he keeps in bank accounts would be privy to such examinations.</p>

<p>We’ve already established his income isn’t what he is referring to…there is no hiding income of course. Maybe you dont understand that the EFC is ALSO BASED ON ASSETS held by students if they are independent.</p>

<p>He is concerned that his ASSETS-not his income- will prejudice his chances at procuring a Pell Grant or Aid.</p>

<p>In no way am I condoning any illegal activity. OTOH, I certainly would recommend someone have an emergency fund of money if they live independently. I would never allow myself to be without ANY SAVINGS.</p>

<p>No…if the income and assets that are reported appear to be too low to be supporting the student/family, they will have to provide additional documentation which explains how they are living without income/assets. Obviously, no one is paying rent, eating, driving, etc. by collecting cans off the street (which would probably be reportable income anyway, haha). If someone else is paying the rent, car payment, etc. then that is reported as untaxed income.</p>

<p>Funny- the OP says he has NO ASSETS. He has SAVINGS. ie MONEY. He doesnt want to contribute to his own education. No one says he has to spend his last dime. But he will have an EFC aftehr having earned income. As he should.</p>

<p>People dont live paycheck to paycheck in this country all the time?</p>

<p>Im confused…I live in the US, where do you live?</p>

<p>Just bc someone WAS earning a modest income(per his description) the govt cannot assume he has savings. No, thats not going to happen.</p>

<p>I think a lot of folks at a different point in their life asset-wise wish this stuff was trackable, but that is different than it actually being trackable. Again, Im in no way condoning or suggesting any course of action, merely discussing topics brought up in the thread.</p>

<p>goodbye zaxx. Please take an economics class or two before you graduate.</p>

<p>Economics has nothing to do with the conversation we are having.</p>

<p>Coincidentally I took both AP economics courses in H.S. and got a 4 and a 5 on the AP tests.</p>

<p>Nothing on either exam had anything to do with common sense logic that can be used to see some kid who made a smallish income during a break from college cannot be EXPECTED to have documentation of where each thousand was spent.</p>

<p>Now if the kid made 55K or something…it be hard to explain going through that.</p>

<p>Goodbye. If you are truly returning to college then take a peek at the financial information you may be required to provide on the FAFSA and/or CSS. Not wasting any more time in this thread.</p>

<p>Hey everyone… it’s not that I have a problem with contributing to my education, it’s just that I <em>really</em> need to have something to fall back on, and my school doesn’t understand that and thinks that because I attend there that I <em>must</em> live in poverty in order to have them help me. I’m not talking about millions of dollars here, but let’s put it out there- I’m an adult, and I have <em>no</em> assistance from my family, and I have medical issues that flare up at random times… and when school is like, “Oh hey, you’ve saved $10? Give us $8 of it.” I just figure, to hell with it… what’s the point? I don’t mind at all contributing to my education, but I don’t feel like I should contribute every last dime I have to the point where I have nothing to fall back on.</p>