<p>what is relationship between Student's Money on Bank Account and Financial aid. (well i know in general it will reduce the financial aid..)</p>
<p>Also is this only self-report?? or do colleges check how much student really have in his/her bank account?? or do students need report with bank statement or something?? how do colleges know or find out how much students(or parents in same way) really have??</p>
<p>I heard some students put their money in their parents account cuz it would affect less and stuff.
Yet I am thinking about that, I am trying to save up (ohkay. just tell the truth, i am poor as my parents. however i work a lot and not spending/wasting all my money on drinking/cloths/car and so on)</p>
<p>Thanks in advance.</p>
<p>p.s : i guess all this thing is basically how college figures out how much i have??</p>
<p>If you are audited, it is possible that the money will be found. As in any case, it is possible to simply lie, but if you are caught, you are lying to the government since that is who sponsors FAFSA. And you and your children could pay. Read again all of those questions on that form, and you will see that FAFSA is not just an application for financial aid from the colleges. It is just a first step form to clear you and your family for aid from the governments, state and federal. </p>
<p>To answer your question, however, money in your account is assessed a whopping 35%, whereas your parents' assets are only assessed about 5.6%. It is suggested a student spends down his money by paying for his stuff instead of having the parents pay for it. If mom and dad want to keep those amounts into consideration for the future, that is fine, but while you are applying for financial aid, the less assets you have in your own name, the better as you are assessed far more than your parents.</p>
<p>First and foremost - DON'T LIE! You are only asking for trouble. If you qualify for substantial aid there is a 50/50 chance you will be audited to confirm your eligibility. Lying about assets to the government on the FAFSA is only asking for trouble. Now as far as your question is concerned, yes it does adversly affect the calculation to have money in the students name. The formula is roughly 35% of the students assets are considered available for paying for college, while only 5% of the parents assets are. Of course, parents income is also a factor. If your parents are earning over 100K, you can expect that the EFC will reflect that. Remember you can't just transfer the money to your parents account if you declared it as yours previously but there are legal ways to do this, such as using your money for qualified expenses that your parents would have paid for you and then having your parents set aside the money in their name. You need to understand the rules, play by them but make them work for you.</p>
<p>The above posters are right, DO NOT LIE, but you can be smart. Before filing the FAFSA, go ahead and pay any expenses that are due, it is okay to be smart about the forms, which included minimizing the money in your name- via legitimate means. You can buy your computer for school pay down your car loan, etc. Basically, you can shift expenses and pay them before the FAFSA filking date.</p>
<p>We all hear stories about people who make bundles of money and lie to receive aid, but no one knows if that is true- we also hear stories about full-ride scholarships to the Ivies for local athletes, and here on CC we know that Ivies do not give athletic scholarships- just because some one says or implies they are doing something does not mean it is true, so don't base your behavior on the supposed bad behavior of others.</p>