<p>So I posted this question (erroneously) on the College Admissions forum and thought a nice mod might move it over, but I just wanted to ask this and be clear. My current job is a federal work-study, and is the only source of income for my assets. In that case, because the calculation of my assets is not supposed to include financial aid awards, would the balance of my assets be 0 if the money being paid in is work-study, even if my bank balance says differently? I think I thought that through, but it sounds suspiciously hinky and I wanted a second opinion. Advice?</p>
<p>I am not sure what you are asking. I think you are saying that the only money in your bank accounts is money from work study. I have always been told that you DO NOT include in the asset value any monies from financial aid, like loans or grants that are in savings and not yet used. I would think, but am not certain, that this would also apply to work study money.</p>
<p>Sorry about the circles, but that was what I was asking. That’s what I was thinking too, and it’s what I’ll probably go with, and I can always explain/apologize if necessary. Thank ya.</p>
<p>wow, good question. Am on my 3rd kid with w/s jobs and we never thought to subtract w/s $ from their checking acct balances before reporting assets. oops makes sense. Other than small holiday gifts, my DD’s checking acct has what’s left of the w/s $ she earned in the fall. she plans to use the $ for expenses (like books, bus/train ticket, etc).</p>
<p>WS wages do not count as income, however if you have money in the bank it is an asset regardless of whether or not it came from a WS job. Therefore, you do need list it as an asset. Can you reduce the bank balance by paying off some bills early this month?</p>
<p>The amount I ended up with (after textbooks and the car deciding it wasn’t getting enough attention and demanding even more money) ended up being low enough (or rather, it was already low enough either way) to fall under the student asset cap, and the next time I deal with this, I will be able to ask one office (instead of having to ask multiple ones). I still do think that because it is money given from financial aid, I could make a strong case for it being not included, but we’ll cross that bridge next year when I get there. The WS money, like other grants and loan money, is financial aid the school awarded and was applied towards my need, as opposed to wages/income from an outside job.</p>
<p>You have to make sure the $ being excluded are TRUE work study and not just a job at the college.</p>
<p>Students don’t have an asset cap…</p>
<p>It is my understanding that Work Study proceeds counts the same as other financial aid awards and do not count in your asset balance. You had better keep very careful tabs on how you are putting money in your accounts, because if you come up for verification, and it turns out not to be the case, you can have the money included.</p>
<p>As far as I am concerned, I tell ALL students to make sure they spend down their assets or remimburse their parents, who should have a college fund for their students, joint with the SSN and primary name under the parents, with such funds accumulating. I say this because students get hit a direct 20% toward EFC on any assets they report on PROFILE and FAFSA. That means 20 cents of every dollar a student reports goes right onto the EFC figure. Parents get an allowance and are only assessed 5.6% of assets over that amount. It’s a big dfference and any college guide to financial aid and advice in this area will say to keep assets on that FAFSA/PROFILE competion day out of the student’s name. Because this requires extra knowledge and work, students get hit with this all of the time.</p>
<p>Sorry, I was thinking about the income cap for taxes-- been looking at these numbers for too long. The balance I ended up reporting was miniscule anyways because of the lull between paychecks and expenses, so the EFC contribution would not have seriously mattered, though I will definitely keep it in mind for the future. Thank y’all! (:</p>
<p>And @Erin’s Dad-- yes, the money is through federal work-study.</p>
<p>cpt is correct, sportlich, your answer is not accurate as to the account balances. An example, Student attends a university and lives off campus, their tuition is paid directly to the school, their living expenses are remitted to them from the school on a term by term bases, funded by loans or grants. On Jan 1 $5000 is given for the spring term, when they file FAFSA, they do NOT include that $5000 in their bank balance.</p>
<p>They do, though, keep excellent notes and print outs showing how they derived the numbers used!</p>