So about a year from now I will be applying for financial aid for college. At this moment I am currently thinking of investing money into a bank Certificate of Deposit which will last for 11 months. So by the time the CD matures it should be around October 2007. If I take out the CD as it matures in October and then apply for Financial Aid on January 2008. Would the CD that matured which I have withdraw affect the amount of Financial Aid I will be able to recieve for college?
2006-11-19 14:01:53 · 2 answers · asked by Jimmy 1 in Education & Reference ➔ Financial Aid
Possibly, but not much. When applying for financial aid, you must fill out a form called a FAFSA, which is a federal form that takes into account the amount of money you have, that your parents/guardian have (if you are a dependent), and your income levels.
The feds then send that information to colleges that you are interested in applying to. They also provide you with that information in case you decide on other colleges between when you fill out the FAFSA and when you fill out your applications.
The money that you have in a CD would be counted, but it would be counted if you simply held it in cash, too. The only difference-maker would be the interest.
2006-11-19 14:11:43 · answer #1 · answered by Brian L 7 · 2⤊ 0⤋
Possibly. I believe the FAFSA does take into account your current assets, but download the form and check to be sure. Unless it's a substantial amount of money (i.e. $10000+), it's probably not going to do much.
2006-11-19 14:11:59 · answer #2 · answered by spunk113 7 · 1⤊ 0⤋