How much can a student have in savings before it hurts them? Does it matter if you know you will not qualify for need based aid? Does the $6000 only apply if you are filling out the FAFSA?
You are confusing savings with income.
More than $2.50 in student savings will increase FAFSA EFC. It’s assessed at 20%.
More than about $6300 of non-work study income will increase FAFSA EFC.
Oh…so any amount they have in saving will increase the EFC. If you know you will not receive anything as far as need based aid goes, then does it really matter if they have $5-10K in their savings?
ANY amount in student savings on the date of FAFSA filing will be assessed at 20% and added to the student EFC.
What else are you asking?
Thanks @Madison85 and @thumper1! Our college counselor told me that I should keep as little in my D17’s account as possible, but if our EFC is super high to begin with, I am assuming it really doesn’t matter! Our EFC is around$62K:(
I assume you are completing the FAFSA for some reason…like Direct Loan…or because your colleges require it for merit aid consideration too?
If your EFC is that high…adding extra dollars to the EFc isn’t probably going to matter.
So just do it.
@thumper1 we will only fill out the Fafsa if we have to for merit. This is all new to me, so just trying to learn as much as I can.
With that EFC, you are not going to receive need-based aid anywhere. So I think student savings are functionally irrelevant.
Having $60 or $6000 in her bank account will not matter if your EFC is $62k
Thank you everyone!