<p>I was wondering if anyone has any advice in preparing for college in a year for my son. I understand from reading info on here that his social security survivors benefits do not have to be included on the FASFA, however; does anyone have advice on who's account to keep it in for when it comes time to fill out the FASFA? my son's savings account or mine? Whose savings account will apply/count towards financial aid awards when it comes to filling out the FASFA?</p>
<p>Both will be reportable for FAFSA but the formulas are different. Parents have an asset/savings protection allowance, based on the age of the older parent, but dependent students do not. Excess parent assets are assessed at 5.6%, student assets at 20% (unless they are in a 529 account).</p>
<p>What is considered excess parental assets? After a certain amount of cash, then the 5.6% kicks in? How would you figure out what that amount would be? I’m just trying to figure out the best way to go about saving the money or spending it. I just don’t want my kids to have to take out student loans that they’ll be paying back the rest of their lives as I am. College degrees are becoming a dime a dozen. Seem to be carrying the equivalent of a high school diploma anymore. Any suggestions on how or what to invest in that wouldn’t count against them when it comes to filling out the FASFA? I would like to create a security blanket for them for later in life once they get a degree and can’t find a job…or if they do, it barely gets them by. Thanks for any advice or suggestions. Much appreciated.</p>
<p>The limits are listed on table A5 (page 19) of this document:</p>
<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf</a></p>
<p>Thank you! I’m going to print and read later!</p>
<p>I’ve read every FAFSA post on this issue and am still a bit confused. I am a single parent of one and guardian to my two nieces ages 4 and 17. My oldest niece is heading to college in the fall. We filled out her FAFSA and listed her as an independent student and listed her income as the survivor benefits and interest from a life insurance policy she receives at 18. </p>
<p>It appears we SHOULD NOT have listed her survivor benefits as income. 100% of those benefits were used for her and her sister’s care (no savings). So her only income is the interest from the life insurance policy, correct? She has not received a check for that, it rolled into the policy and is under $1,500.</p>
<p>Is her SS income untaxed? It seems very clear in the FAFSA instructions that untaxed SS benefits of any kind are not reported as income. If she has to declare them for tax purposes, then she has to for FAFSA as well.</p>
<p>No they are not taxable. I guess I should update because I did report first round. Thank you, because one of her schools offered to meet 100%of her need and I want to make sure she gets what she is eligible for.</p>