My checking acct balance is high because of financial aid refund checks.Is this bad for the FAFSA?

Question

I am taking out loans to fund my education and I live off campus. The loan money goes into my school billing account and the remainder after the tuition for the term is paid off, the money goes to me which I then use for food and housing. No where on the FAFSA do I see questions asking about my debt in loans. So how can the government know that the high checking account balance is due to loans and not other things?

Answer 1

The government is well aware of what it takes to live. When you turn your info in for the next year they are aware of what is going to go where when they see that your income comes totally from loans. They are also very much aware of what you have coming out for loans. I would warn you not to take out more than you need. Student loans can be crippling especially if you're going into a field that doesn't make the big bucks.

Answer 2

You are not supposed to count funds from financial aid in the balance of checking, savings and cash so just subtract out what is from loans and report that new figure.

Answer 3

I did the same thing in college. They won't know. That is money that they calculated that you NEED for college and other expenses. You use it for what you want to.