Hello. I am currently a second year undergrad and was wondering how student savings accounts affect the financial aid I receive. I have a savings account with $2,000 in it because I have been saving up the refund I get from financial aid. I have a job and I use that instead to pay for my expenses. However, I do switch the money from my savings to checking from time to time in case I do need to pay off for extra expenses. Would this affect the amount of money I received from FAFSA if I continue to keep saving more money into the savings account? I read that 20% of student assets is accounted for in the EFC. So would it be better to move the money somewhere else like an older siblings banking account? My parent’s total household income is about $35,000 if that makes any difference.
Any money in your savings that is financial aid money should NOT be counted as money in your savings.
Yes it would make your efc go up about 400$. That isn’t too much but if you do want that 400$ and want to make it more complicated or keep it in your home, that would be advised. I have experience as I’m an incoming freshman and my personal bank account made my efc go over 1000$ Then it should have
Actually what thumper said is correct if it is apart of your financial aid package that you received but I just don’t know how you would report that on fafsa? Would you just say you don’t have money ?
My kid will be receiving a refund this year. She will keep that money in a separate account from her regular savings. That way…on,y HER regular savings will be easily listed on the fafsa.
Really though…just keep a record of the amount you were refunded from financial aid…and don’t count that amount.
If you have money that is required to be reported on FAFSA, it doesn’t matter where it is. It could be in your savings account, it could be in an older sibling’s bank account, it could be in an old shoe box in your closet, it could be buried in a coffee can in your back yard. You need to report it on FAFSA, no matter where it is, if it belongs to you, as required by FAFSA.
But money that is financial aid money…that’s not included as an asset. Right?
Right. That’s why I included the wording “required to be reported on FAFSA.”