<p>Sorry about the title, wasn't sure how to make it short & sweet.</p>
<p>My son will be going to the UK for a semester abroad in January. We've applied for loans and will be receiving a pretty substantial check shortly for him to spend on room/board, books, etc. while there. I intend to deposit the check in our joint checking account. When filling out the FAFSA, is there any place on it to clarify why a HUGE amount (to us) is in a sep. checking account and being used for his school in the UK?</p>
<p>I also tried to use the EFC Calculator in one of the "stickies" and it wasn't available any longer. Anyone know where it's gone?</p>
<p>Thanks for any help you can lend - Happy New Year!!</p>
<p>Won’t the money be rec’d and deposited in 2010? </p>
<p>Will that affect your 2009 records? </p>
<p>Won’t the money be long gone when you file using 2010 info? </p>
<p>How long will the money be in your acct? It sounds like it will be deposited and almost immediately spent. It would seem to me that if you deposit and spent the money within the same month, what would be the problem? It seems like it would be like receiving a big check from your insurance company, and then immediately spending in on repairs.</p>
<p>There are some people on this board that know a lot about FAFSA, etc, but those were just thoughts that I had.</p>
<p>Yes, the money will be deposited in 2010. I thought when filling out the FAFSA, one of those boxes wants to know how much you have in accounts THAT day. We’ll have a lot that particular day, but it’s earmarked for spending on room/board, books, etc. when he reaches University.</p>
<p>He won’t be spending all the money at one time. It will be taken out in dribs and drabs as he needs it in UK.</p>
<p>Can you deposit the money after you fill out your FAFSA? </p>
<p>I would think that there would be a way to NOT have all of that money in the acct on a particular IF you’re required to state the exact amount on the day that you file. Can the money be put on a pre-paid Visa or something? </p>
<p>What day will you file FAFSA? What day will you need to deposit the money in order for the funds to be available to begin paying for some of your son’s expenses? </p>
<p>I hope that those who know a lot about FAFSA will chime in here. :)</p>
<p>It just doesn’t seem right that money from a loan for a college expense should affect your EFC.</p>
<p>Yes loans will affect the EFC if the money is in the bank on the day FAFSA is filed. For instance if someone takes a HELOC out to pay house repairs or even tuition then if the money is in the bank on the day FAFSA is filed it becomes a reportable asset. However student financial aid in the bank on the day FAFSA is filed is not reported as an asset. For instance my daughter gets a refund of her excess aid (including federal student loans) after her tuition and fees are paid. She uses them to pay her rent/bills etc. They are not reported as assets.</p>
<p>You do have a certain amount of asset protection based on the # of parents and the age of the older parent. If your assets remain below this then it will have no impact.</p>
<p>Otherwise can you not just time the loan so that it is not paid to you until after you have filed FAFSA? File FAFSA early with estimated income numbers if need be. You will have to go back in and correct the income numbers but you do not (and are not supposed to) change the asset figures. They are supposed to reflect your assets on the day you file.</p>
<p>*Otherwise can you not just time the loan so that it is not paid to you until after you have filed FAFSA? File FAFSA early with estimated income numbers if need be. *</p>
<p>What if she receives the check on - say January 4th - but she doesn’t deposit the check until - say January 15th (after she files FAFSA)? Or, would she have to tell the bank, “Don’t cut the check until January 15th?”</p>
<p>better to not take actually the loan out till after FAFSA is filed. Most times when I have taken a loan I have told the bank when i need the loan.</p>
<p>It sounds like she’s already applied and has qualified. So, what can she do now? I don’t see why she can’t just ask them not to cut the check yet.</p>
<p>Those are all excellent things to think about - thank you. The loan is a Parents PLUS loan which is being handled through the school. As I understand from the financial aid people at the school, they’ll send the loan check to me sometime in January (minus the consortium charge for the study abroad semester.) The balance is earmarked to pay his landlord each week, food, books, and whatever else he’s going to do there (travel, hopefully not too many pubs.) My son is leaving at the end of January. When he reaches the UK, in order for him to clear customs/immigration control, he needs to show proof (bank statements - his and parents) that he can sustain himself while studying there. So the $$$ have to be in an account in order for him to be allowed in the country. </p>
<p>The general consensus seems to be that I should file the FAFSA prior to putting the check in the bank. Then, when filing my tax forms (which historically gets done before the end of February), just go back to FAFSA and correct whatever numbers I need to with the exception of the bank information. Is that it?</p>
<p>Yes that is what I would do. Estimated your income and taxes as accurately as possible and file FAFSA ASAP. Then once you complete your taxes go back and correct the income information. you are not supposed to adjust asset figures unless there is a mistake as of the day you filed FAFSA.</p>
<p>Student financial aid does not have to be reported as an asset on FAFSA. I don’t see anywhere that it says the same about PLUS loans in the parent name. It would seem logical that they would not be reported either but I can’t find anything addressing that. Maybe one of our actual financial aid officers (Kelsmom or Nikkil) will check in and chime in on that. Otherwise I would err on the side of caution and just file your FAFSA before the loan is disbursed to you. This is assuming your total assets will be over the protected allowances once you include the loan - if not the loan will have no affect on the EFC anyway.You can find the asset protection limits on page 19 here
<a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf</a>.</p>
<p>Thank you very much for the help - I appreciate it. I enrolled my son in the Florida Prepaid College Plan when we lived in Clearwater, but that has been just about used up due to the differences in out-of-state tuition prices. I almost got 2 years of tuition/dormitory for “free”, so I’m glad I did that - even though it was a struggle sometimes to pay each month. I’m so thankful I was able.</p>
<p>Anyone else have any advice about whether the Parents PLUS loan proceeds need to be added as assets - even though they are being used to study abroad expenses for the student?</p>
<p>Geez - gotta run - going to buy a lotto ticket (again . . . . .)</p>
<p>Isn’t a parent Plus loan part of student financial aid? Therefore would not need to be reported?</p>
<p>When a school presents an aid package, they show COA-EFC = need and that need can be partly filed by PLUS loans, so that makes me think it is part of student financial aid making up COA $</p>
<p>You really need to have the paperwork perfect for the VISA to the UK, with all the rule changes this year some people have been declined for silly errors (like not dotting all the i’s & crissing all the t’s on showing full funds) but if it is a short term study abroad, does he ever need the student visa?</p>
<p>Mom2collegekids…ASSETS balances are reported as of the DAY OF THE FILING of the FAFSA. NOT what they were in 2009. SO if the OP has this large sum of money in the account on the day of the filing of the FAFSA, it WILL be reported as an asset.</p>
<p>Agree with Swimcatsmom…complete your initial filing of the FAFSA TODAY…before you take the loan money and it’s in your account. Remember…assets are reported as of the day of the initial filing of the FAFSA.</p>
<p>As far as the visa goes, he doesn’t need one since it’s only for a semester. He does need his University acceptance letter to the UK school, the letter from the USA school, passport, bank statements, return ticket. I’ll get on the FAFSA ASAP. Thank you everyone for the clarification.</p>
<p>Re: the money situation and studying in the UK. My son did a semester study abroad in the UK in 2003. We (the parents) had to provide signed affidavits and provide copies of our bank statements (and maybe pay stubs…i don’t remember) so that when DS entered the UK, he would have evidence that we were going to provide his financial support while he was there. </p>
<p>You want to be sure you don’t have to do the same. This was not needed to secure a visa…it WAS needed so that DS could enter the UK to study.</p>