<p>There is a question on the FAFSA to enter the student's assets, savings account, checking account, etc. I had a friend ask me how would financial aid offices verify this information when they verify each FAFSA via asking for supporting documents. My college and my brother's college don't make us verify the information regarding the money in the savings accounts and checking accounts, so we don't know. </p>
<p>Can anyone help us out?</p>
<p>I expect they’d just ask for copies of your bank statements for checking, savings, and bank-held CDs, and brokerage statements for other investments.</p>
<p>Oh I see. But on the FAFSA, it says not to include financial aid money, scholarships, etc. How would the financial aid office be able to distinguish what part of the large sum of money is financial aid / scholarship money and which part is not financial aid / scholarship money? </p>
<p>Not only this, but on the FAFSA it also says only enter in the number that is present at the time you are filing the FAFSA. What if someone tries to game the system by withdrawing all of their money before they fill it out, then fills it out, and then deposit back in the money? Would the financial aid office ask for all of the transactions from the last 2 years to make sure no one does this?</p>
<p>Actually, you are supposed to include the cash in your sock drawer under the “other” category. </p>
<p>If your bank account would be verified, and you had financial aid money sitting there, I’m sure that you could tell them how much is left-over aid.</p>
<p>But how would they be able to calculate how much is left over financial aid and how much isn’t left over financial aid?</p>
<p>As far as I know (and being a newbie in this game, my D is just entering college so we haven’t yet gone through a year of dealing with actually paying the bills), financial aid is credited through the colleges to one’s account. They don’t cut a check, mail it to students/parents (who then in turn deposit it into their bank accounts) and then the student/parents pays the bills from that. Even outside scholarships are turned over to the schools. So, it seems to me it wouldn’t show up in a personal savings/checking account that would have to be accounted for during the following year’s round of fin aid applications.</p>
<p>Why don’t you pop by the financial aid office at your college/university and ask them? They should be able to explain the whole procedure to you.</p>
<p>I think on your taxes, interest statements are telling. I read in a newspaper a year or so ago, a FA office said, sometimes rich students will have a low number in the savings column but a high bank interest statement…it doesn’t match. Changes to make it work, should be done more than a year ahead of time.</p>
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We don’t get paper statements any more.</p>
<p>It would be pretty much impossible for us to go back to some arbitrary date (like the day the FAFSA was filed) and prove what the balance was.</p>
<p>My understanding was that verification involved only tax returns, but I could be wrong.</p>
<p>You CAN go back online and print a copy or have the bank or institution get the info.</p>
<p>I print out a screenshot of all my online account balances when I start doing FAFSA. I put that into my financial aid folder for each year in case anything is ever questioned.</p>
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If you are going to lie about your assets, something like a screenshot would be completely trivial to fake.</p>
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<p>First…you shouldn’t HAVE a lot of extra cash in your accounts that are financial aid money. That money should have been paid to your college.</p>
<p>Second. The COLLEGE disbursed the financial aid money so they would know how much they gave you. </p>
<p>Third. Colleges are required to send a 1098T to students receiving scholarships/grants. This contains the amount of qualified expenses AND the amount of aid you received. This would clearly document the scholarship/grant amounts.</p>
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<p>This isn’t a legitimate form of proof due to the existence of photoshop, MS Paint, etc.</p>
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<p>I agree with this.</p>
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<p>This wouldn’t work since the screenshot can be easily faked. </p>
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<p>Well I’m not lying about my assets or anything. Neither is my friend (I’m asking this for a friend not for myself), but I agree with you on the screenshot being faked easily.</p>
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<p>I can’t because my college doesn’t do this. I’m actually asking this for a friend (who goes to a different college).</p>
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<li><p>I do. It is just that it is leftover financial aid money due to careful budgeting and the fact that total cost of attendance is very frequently overestimated (in order to benefit the student). </p></li>
<li><p>Right, except the question I’m trying to ask isn’t “How would the Financial Aid Office know how much financial aid they are giving me?” The question I’m trying to ask is "How would the FAO be able to distinguish the difference between left over money from my Financial Aid and “other money” in my checking / savings account (or rather my friend’s checking / savings account since I’m actually asking the question for him).</p></li>
<li><p>Do students of all income levels get the 1098T or is this form only sent to students of certain income levels?</p></li>
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<p>Every student gets a 1098T.</p>
<p>If a college were to truly doubt the bank documents that you produced, they could ask for an official statement from the bank itself. Banks issue paperwork like this all the time for any number of financial purposes.</p>
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<li><p>Are you trying to say every student gets a 1098T or all students who receive financial aid gets a 1098T? </p></li>
<li><p>Does the 1098T go by any other name? Maybe I have received such a document but without knowing it since it may go by another name.</p></li>
<li><p>Also who issues the 1098T? The IRS or the financial aid office?</p></li>
<li><p>Also how would the FAFSA go about in verifying the FAFSA you submitted?</p></li>
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<li>Are you trying to say every student gets a 1098T or all students who receive financial aid gets a 1098T? </li>
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<p>Every student who receives scholarship and/or grant money receives a 1098T.</p>
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<li>Does the 1098T go by any other name? Maybe I have received such a document but without knowing it since it may go by another name.</li>
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<p>No…that’s it’s name.</p>
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<li>Also who issues the 1098T? The IRS or the financial aid office?</li>
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<p>The college issues the 1098T.</p>
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<li>Also how would the FAFSA go about in verifying the FAFSA you submitted? </li>
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<p>FAFSA doesn’t verify…the colleges verify.</p>
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<li><p>Does the FAO send the 1098T directly to the student or directly to the parents or both directly to the student and parents?</p></li>
<li><p>If I haven’t been receiving a 1098T for 3 years in a row while receiving financial aid, should I be worried? </p></li>
<li><p>Who exactly fills out the 1098T? The parents or the student?</p></li>
<li><p>What if you got all loans and no grants or scholarships? Would you still receive a 1098T? </p></li>
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<p>Or maybe I have been receiving the 1098T and I’m just not thinking straight right now. I just pulled an all nighter and I’m about to go to sleep soon. I’ll dig through my financial aid documents to see if something rings a bell. I’ll also give my mother a call if she remembers anything about a 1098T.</p>
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<li>Does the FAO send the 1098T directly to the student or directly to the parents or both directly to the student and parents?</li>
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<p>It’s sent to the student. It’s in an envelope that looks like a W-2 form. Our kid’s said “Important Tax information”. It was pretty easy to spot.</p>
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<li>If I haven’t been receiving a 1098T for 3 years in a row while receiving financial aid, should I be worried? </li>
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<p>Did you receive scholarships or grants? If so, you should have gotten a 1098T. </p>
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<li>Who exactly fills out the 1098T? The parents or the student?</li>
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<p>AGAIN…The COLLEGE fills out the 1098T. It is sent by the COLLEGE to the student.</p>
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<li>What if you got all loans and no grants or scholarships? Would you still receive a 1098T? </li>
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<p>NO…you only get the 1098T if you have scholarships or grants. Reason being that scholarships and grants in excess of tuition/fees/books are considered taxable income. The 1098T has allowable expenses (usually only tuition and fees) from your university AND another space that lists scholarships/grants. If your scholarships and grants are HIGHER than the allowable expenses, you pay tax on the difference.</p>
<p>Or maybe I have been receiving the 1098T and I’m just not thinking straight right now. I just pulled an all nighter and I’m about to go to sleep soon. I’ll dig through my financial aid documents to see if something rings a bell. I’ll also give my mother a call if she remembers anything about a 1098T. </p>
<p>The 1098T would be mailed to your permanent address…usually that would go to your parents. If they are filing taxes and declaring you as a dependent AND you got one of these, perhaps they used it to get one of the college tax credits.</p>
<p>If the college fills out the 1098T and mails it to the student, does the student have to do any “filling out” or is everything already “filled out” and the 1098T that gets sent to the student just serves as a notice or for future references and records?</p>