How much in assets can I report on my FAFSA and still qualify for Financial Aid?

Question

I've been saving all I can, and now I'm worried they'll discontinue my aid eligibility for saving too much. Anyone know what the upper limit is?

I can see from the answers I needed to clarify some details: I'm an older grad student, with no support from parents or anyone else.

To the nice person who suggested I'm cheating - all I asked for was a number - save your moralizing for yourself.

Answer 1

Unfortunately, you will not be eligible for Pell grants as a Grad. I'm sure you prob know that though.

Also, it doesn't matter what your income is "to still qualify for financial aid". You will be eligible for loans no matter your income, just the type of loan you receive. There is not "upper limit" that I'm aware of. Besides the fact that all the formulas are based on number in the family, number in college, expense of school, full vs part time enrollment, income, assets, and so on.
So what would be true for one person may not be true for another because it's looking at the entire financial picture, not just one item like your "assets". I've attached a Dept of Ed publication regarding the different types of loans and minimum and maximum amounts and how they calculate.
Good Luck and hope for Subsidized loans.

Answer 2

If you are a grad student you will only be eligible for a Stafford Loan in any event, so I am guessing you are trying to position yourself for Subsidized eligibility.

Assets are only part of the equation in determining what your EFC (Expected Family Contribution) will be. Your income, your household size and number in college, as well as any business income, or government subsidies are also taken into consideration.

If you have the time and inclination, you can manually calculate your EFC:

http://www.ifap.ed.gov/eannouncements/attachments/0708EFCFormulaGuide.pdf

Being a financial aid officer, I have to just say that you you are legally required to accurately report all that is requested when you complete your FAFSA.

Good luck!

Answer 3

"Saving all you can..." For what? That new car to drive to college with or that first Spring Break trip you've been saving up for?

I've had as many as three children in college at the same time (last year actually, two this year) and we didn't do anything to falsify the truth. Would we have liked to see it be more? Of course. FAFSA expects applicants to either contribute 6% of assets as part of the calculation or get loans to cover that part (I learned that from the FinAid office). Work as many angles as you can within the law, I applaud that. See my source below on how to maximize your aid. It also talks about the penalties towards the end of the page. Read the section "A Word About Honesty" closely.

FAFSA Fraud has severe penalties, probably far greater than the FinAid difference you will get by lying to yourself, and both the government and your intended graduate school. Then, if found out, your record of fraud will still be there when your children come around asking for aid, it will become part of your permanent family record, not just your own, the government will never allow you to co-sign any federal or state loan with such a record.

And then comes the question of your own ethical integrity. You will always know you stole the money. "They'll never find out" really isn't as true as you might think. There are new programs designed to detect fraud and the greater burden is placed on the college which has more to lose by not reporting you.

Stand up and act ethically from the start. Don't start off your professional career with lies, they will haunt you forever...and set a pattern of behavior that can dog you well into your life beyond graduate school.

The last time I checked, taking money under false pretenses is clearly defined as fraud and theft. As an older graduate (I hope you're not considering law school) you've seem as though you've been financially harmed before and are seeking systemic retribution.

If you'd like to read more on the connection between Law and Morality, check out this article on Legal Positivism:

http://en.wikipedia.org/wiki/Legal_positivism

In part, "there is no inherent or necessary connection between the validity conditions of law and ethics or morality." and that "A law is a valid law if posited, in the proper manner, by a recognized authority, regardless of its moral implications"

I also went to graduate business school finishing part-time in 3 years at the age of 35. I speak from experience, I also sought financial aid with factual information, received what I deserved, and borrowed the rest, as expected.

Answer 4

Your contribution is based on a larger percentage than your parents on the FAFSA form when it comes to income and savings. Unfortunately, there is a look back period which can come back to haunt you. There are calculators out there to find out what the impact would be to you on your contribution. I will provide some links below which should help. I do recommend searching for scholarships and applying for consideration to help out some. Good luck!

Answer 5

Don't list your assets unless it is something that can be traced (ie a house). Even if you have money in the bank or you own things your debt probably cancels such out. If it didn't you wouldn't be filing for Fin Aid.

Answer 6

OK here is what you should do?
Take the money out of Bank and leave only $100 in it. also if you are living with your parents, show that you are paying them rent. show more expenses. being a full time student is considered a job, so even if you don't have job, don't worry about it.
do not and i repeat do not show your savings. you will get either too less or you won't get any aid.

Answer 7

Im not sure but I just thought Id share with you that FAFSA is a joke. It expected my parents to pay 23,000 a year. Ya, thats not even close to possible...