<p>I have a question about financial aid. One of my good friends receives financial aid; i.e. FAFSA, etc. I wanted to apply last year but I didn't think I would get anything. He told me I should try. I am unsure if I would be able to receive financial aid. My Dad passed away at the end of 2005. He had a life insurance policy that put $50,000 in my Mom's bank account. My Mom doesn't work. My Grandpa helps with the mortgage on the house. This money isn't income. Would I be able to receive financial aid knowing that my Mom has that much money in her back account. Also, just in case anyone asks, I do live with my Mom and my sister.</p>
<p>Yes you should definitely apply. If your mom has little or no income the cash in the bank would probably not even be considered. go to </p>
<p>and run your income/assets through the calculator and it will give you an idea. It sounds likely that you will qualify for aid. Fill out FAFSA.</p>
<p><a href="http://www.fafsa.ed.gov/%5B/url%5D">http://www.fafsa.ed.gov/</a></p>
<p>It is free to fill out so you have nothing to lose and everything to gain. Make sure you meet your schools deadline to maximise your aid.</p>
<p>If you need help ask on this forum - people are always willing to help.</p>
<p>Good luck.</p>
<p>Swimcatsmom, if the insurance proceeds were recieved in 2006, they would have to be added as other income. The help Grandpa gives to the house is also other income according to financial aid. This is a technicality that many do overlook, i believe, and the poster should talk to someone who can help her with the FAFSA; possibly the GC can get someone who is knowledgeable that may do workshops for the school. Insurance proceeds do not have to be reported on tax returns, nor are gifts, and if Mom is eligible for a 1040EZ that year, her assets will not be counted for FAFSA.</p>
<p>I didn't know the insurance proceeds would be treated as income on FAFSA. Thanks for that info. TheCaliforniaLife - you should still do FAFSA and make an appointment to talk to the financial aid officer at your school soon. Your circumstances are such that advice from someone who is an expert in this area is essential. Don't be afraid to ask for his/her advice. That is what he/she is there for.</p>
<p>FAFSA looks at four factors: parent(s) income, student income, parent(s) assets, student assets, subtracts some standardized deductions and then pumps out an EFC (estimated family contribution). There are two exceptions to the FAFSA calculation (the automatic zero EFC, and the simplified needs test). </p>
<p>Under the simplified needs test, if the parent</p>
<p>Something happened when i tried to post.</p>
<p>FAFSA looks at four factors: parent(s) income, student income, parent(s) assets, student assets, subtracts some standardized deductions and then pumps out an EFC (estimated family contribution). There are two exceptions to the FAFSA calculation (the automatic zero EFC, and the simplified needs test). </p>
<p>Under the simplified needs test, if the parent</p>