Hi,
I just received my first pay check and I was reading online about how summer jobs could affect how much financial aid a student receives. The ceiling for the amount a student can make without impacting financial aid was around 6,000 and I don’t think I will be passing that limit with my job. My problem is I don’t know where to put my money. Anyone have any tips on where to put my money from my current job without impacting my financial aid? I read that putting money into savings accounts affects financial aid because FAFSA expects the student to pay more or something like that. Anyways, any insight in appreciated on what I should do. Thanks!
It WILL impact your FA. You’ll just need to accept that. Your assets are assessed at 20% for FAFSA.
Before you worry about this, maybe try out a net price calculator at an instate public and private college website with your parents’ and your income and assets and without your assets and see if it makes a difference and if you would even qualify for aid.
I’m saying instate because if you indeed qualify for federal and maybe institutional aid you might also qualify for state grant.
My daughter got a part-time job and since we don’t qualify for federal aid this money will help offset some of her costs like books, personal expenses at college.
Put your earnings in a 529 college savings plan. Then it’ll be treated as your parents’ asset for purposes of all financial aid calculations, even though it’s still your money. (So the funds will be assessed at only 5.6% instead of 20%.)
You’ll still have to report the income you earned, but the money won’t be reported as a student asset.Just do a google search for 529 plans to get more info about them. Each state has its own plan, but you can open a plan anywhere you like - you don’t need to use the one in your home state. It doesn’t cost anything to open one, and they’re easy to set up.
Do you have any big expenses coming up? A car repair? new tires?
Will you be using any of the money towards college expenses? Text books?
I agree with the suggestion of putting the savings into a 529.
I wish the FAFSA rules would allow students to save a bit (maybe $2000?) without it affecting aid.
In January before you file the FAFSA prepay your rent through the end of your lease, and buy your textbooks for the semester.