The first “bunch” of assets (size of “bunch”depends on the parents’ age) for every family is protected and doesn’t affect financial aid. You should have always been asked if you have assets exceeding $XXX amount (the protected amount). If you say no, they don’t ask any more questions about assets. If you say yes, meaning you have enough to affect (even minimally) the aid calculations, then they ask for a more detailed breakdown of your assets. Hope this helps explain!
May I know for example , that my investment has current market value is $500K as today, but I only put my money is $30K in the begining years ago so how I can report my investment value now? because the market is changed all the time, may be negative tomorrow? thanks
You are asked to report the value as of the day you're completing the form. It might have been different yesterday and might be different tomorrow, but what is the value today?
Unless you want to break the law, yes. While the schools won’t check every answer for every student, they always reserve the right to request documentation, so it’s best to be honest.
@@Cookie-wu1jg If asked for them, yes. Depending on your answers to earlier questions, some applicants are not asked the asset questions, but if you're asked for the balances of your cash/checking/savings accounts, investments, and businesses, you need to answer the questions.
Technically, you're just allowed to subtract debts owed on investments, not bank accounts, on the FAFSA, but it would be a good idea to let the financial aid office(s) know about any additional debts in a separate letter and ask them to consider.
So let's say I have $5,000.65 in my bank account. This is still a college account from when I first started college. I don't have a 401K, or a savings account. For the question of "Current balance of cash, savings, and checkings account" I would put in $5,000?
Something like Zillow seems overinflated and arbitrary, and how do you prove it? It seems like there should be something specific to get your "current market value". Is there?
Not really, as you house is worth whatever someone will pay for it. Outside of putting your house on the market, it’s a best guess. You could contact a realtor/get an appraisal, but using a site like Zillow is usually an easier method. You don’t have prove anything-it’s your best estimate.
If you're filling out the FAFSA today, you put the what you have in cash and in bank accounts, and the value of any investments, today. It's a moment in time.
If you don't have to report your IRA or retirement accounts other than how much you contribute to them, why does the college board form (CSS profile) form ask for the current value of tax-deferred and after-tax retirement, pension, annuity, and savings plans such as an IRA, ROth, Keogh, SEP, 401, ....?
This video is solely referring to the FAFSA, where retirement accounts are not reported. If you apply to a school that requires the CSS Profile, that form does ask for your retirement balances, but the good news is that those questions don’t actually feed into the financial aid calculations by default. They are asked solely for informational purposes and would only be used in very unusual circumstances.
Probably not, but if they have any reason to be suspicious (i.e. they see interest/dividend/capital gain income reported on your tax return), they always reserve the right to.
@@CollegeCoach What if my stocks are worth 10k when I fill out my fafsa in november(right now), but if I get verified in March and the stocks rose to worth 50k, do I get to still say my assets are 10k if I documented that it was 10k when I filed in november?
@@cookehmonstashe5332 Yes, when it comes to assets, the financial aid process just looks at a point in time--the day you complete the FAFSA. Financial aid will generally not change based on a change in assets after that date.
You're welcome. You can do whatever you want with your own money. Note that tax returns may be requested by some schools as part of the financial aid application process. If a college sees evidence of an asset (like interest/dividend/capital gain income) on a tax return, yet you report no asset, they may question where the money went.
As retirement accounts, Roth IRAs are not currently reported on the FAFSA and not taken into account for financial aid at the vast majority of colleges. Note, however, that there are about 200 colleges that ask for an extra form called the CSS Profile, and those colleges may include the kids’ Roths in their financial aid calculations. (Also, for the record, an individual must have earned income in order to be eligible for a Roth IRA.)
I can’t move on from that part because I don’t have a bank account or balance and when I put my balance as 0 it won’t let me proceed I would end up in the same place
Not sure what’s happening there. I’d try going back a little bit to make sure you didn’t previously give an answer that would indicate a greater than zero balance. Otherwise, it should let you enter it. Contact FAFSA customer service if you continue to have issues.
1. i if the money saved under the student bank account is less than $7,000 would they count that towards the 20% deduction too or is it only if u have $7,000 or higher? i know it’ll count if ur income is $7,000 or higher but what if u have less than $7,000 in a bank account? 2. when their asking for assets, do we also count the money we have in our wallets or just the money we have in the bank account? and since my dad has a company do i add the assets from the company along with his own or will they be asked separately? 3. i have left over financial aid money but it is in my parents bank account since i don’t have a bank account. so when they ask for the student’s assets am i supposed to count that leftover financial aid money? thank u!!!! :)
@rosie bell, there's a lot here, so we'll answer on the next episode of our podcast. Tune in for the answer on or after 10/29/20. www.voiceamerica.com/show/2430/getting-in-a-college-coach-conversation
Can you talk about how financial aid will be affected if the dependent student gets a part time job? Also what a student should do with their money earned from their part time job in order to maximize their financial aid? Please? Thank you!
Student income less than about $7,000/yr doesn't affect the aid calculations at all. If that money is saved, though, and sitting in a cash/checking/savings/investment account at the time the aid application is filed, it could result in a reduction in financial aid eligibility of about 20% of the amount of the savings. The only type of account that would be totally invisible to the financial aid process (at most, though not all, schools) would be a retirement account like a Roth IRA.
If most of my balance is Pell Grant refunds should i subtract that from my total checking account balance?
Hey! Just seeing this, but why am I getting asked about assets now? I was never asked in years before. Did i enter something wrong? Thanks in advance!
The first “bunch” of assets (size of “bunch”depends on the parents’ age) for every family is protected and doesn’t affect financial aid. You should have always been asked if you have assets exceeding $XXX amount (the protected amount). If you say no, they don’t ask any more questions about assets. If you say yes, meaning you have enough to affect (even minimally) the aid calculations, then they ask for a more detailed breakdown of your assets. Hope this helps explain!
May I know for example , that my investment has current market value is $500K as today, but I only put my money is $30K in the begining years ago so how I can report my investment value now? because the market is changed all the time, may be negative tomorrow? thanks
You are asked to report the value as of the day you're completing the form. It might have been different yesterday and might be different tomorrow, but what is the value today?
do you have to give them the real answer
Unless you want to break the law, yes. While the schools won’t check every answer for every student, they always reserve the right to request documentation, so it’s best to be honest.
Do I have to put in my assets
@@Cookie-wu1jg If asked for them, yes. Depending on your answers to earlier questions, some applicants are not asked the asset questions, but if you're asked for the balances of your cash/checking/savings accounts, investments, and businesses, you need to answer the questions.
If my parents have loans in their account that they have to pay back do I include that in assets? Or just what they don’t owe back on?
Technically, you're just allowed to subtract debts owed on investments, not bank accounts, on the FAFSA, but it would be a good idea to let the financial aid office(s) know about any additional debts in a separate letter and ask them to consider.
So let's say I have $5,000.65 in my bank account. This is still a college account from when I first started college. I don't have a 401K, or a savings account. For the question of "Current balance of cash, savings, and checkings account" I would put in $5,000?
Correct.
@@CollegeCoach thank you!
I don't remember filling out this question before. It seems like the threshold changed to 0. What happened?
Not sure what you’re asking. Can you clarify?
Something like Zillow seems overinflated and arbitrary, and how do you prove it? It seems like there should be something specific to get your "current market value". Is there?
Not really, as you house is worth whatever someone will pay for it. Outside of putting your house on the market, it’s a best guess. You could contact a realtor/get an appraisal, but using a site like Zillow is usually an easier method. You don’t have prove anything-it’s your best estimate.
@@CollegeCoach Thank you for your response!
if my mom just got her check today would i put what her check is in this asset question?
If you're filling out the FAFSA today, you put the what you have in cash and in bank accounts, and the value of any investments, today. It's a moment in time.
If you don't have to report your IRA or retirement accounts other than how much you contribute to them, why does the college board form (CSS profile) form ask for the current value of tax-deferred and after-tax retirement, pension, annuity, and savings plans such as an IRA, ROth, Keogh, SEP, 401, ....?
This video is solely referring to the FAFSA, where retirement accounts are not reported. If you apply to a school that requires the CSS Profile, that form does ask for your retirement balances, but the good news is that those questions don’t actually feed into the financial aid calculations by default. They are asked solely for informational purposes and would only be used in very unusual circumstances.
If I reported that I don't have savings, will they check my bank account to confirm?
Probably not, but if they have any reason to be suspicious (i.e. they see interest/dividend/capital gain income reported on your tax return), they always reserve the right to.
@@CollegeCoach Yeah, that makes sense, thank you.
@@CollegeCoach What if my stocks are worth 10k when I fill out my fafsa in november(right now), but if I get verified in March and the stocks rose to worth 50k, do I get to still say my assets are 10k if I documented that it was 10k when I filed in november?
@@cookehmonstashe5332 Yes, when it comes to assets, the financial aid process just looks at a point in time--the day you complete the FAFSA. Financial aid will generally not change based on a change in assets after that date.
How about if I am an independent student? Can I transfer my savings to my patentes?
Btw thanks for the information
You're welcome. You can do whatever you want with your own money. Note that tax returns may be requested by some schools as part of the financial aid application process. If a college sees evidence of an asset (like interest/dividend/capital gain income) on a tax return, yet you report no asset, they may question where the money went.
If I’m asked “Do you want to skip the student’s asset questions?” Should I say “Yes” or “No” ?
Yes. Unless your college has specifically told you to complete those questions (which is unusual), you can skip them.
I want to open a Custodial Account Roth IRA for my kids. Would the account affect the Fafsa in the future? They’re 6 and 3 years old
As retirement accounts, Roth IRAs are not currently reported on the FAFSA and not taken into account for financial aid at the vast majority of colleges. Note, however, that there are about 200 colleges that ask for an extra form called the CSS Profile, and those colleges may include the kids’ Roths in their financial aid calculations. (Also, for the record, an individual must have earned income in order to be eligible for a Roth IRA.)
I can’t move on from that part because I don’t have a bank account or balance and when I put my balance as 0 it won’t let me proceed I would end up in the same place
Not sure what’s happening there. I’d try going back a little bit to make sure you didn’t previously give an answer that would indicate a greater than zero balance. Otherwise, it should let you enter it. Contact FAFSA customer service if you continue to have issues.
If I’m saving money for tax pay later then what can I do
Not sure what you're asking here. Feel free to explain further, or check out our blog at blog.getintocollege.com for much more information.
What if my Mom and I are joint account in our bank? Is that okay?
If it is a joint account, 50% should be reported as a parent asset and 50% as a student asset.
College Coach Thank you!
1. i if the money saved under the student bank account is less than $7,000 would they count that towards the 20% deduction too or is it only if u have $7,000 or higher? i know it’ll count if ur income is $7,000 or higher but what if u have less than $7,000 in a bank account?
2. when their asking for assets, do we also count the money we have in our wallets or just the money we have in the bank account? and since my dad has a company do i add the assets from the company along with his own or will they be asked separately?
3. i have left over financial aid money but it is in my parents bank account since i don’t have a bank account. so when they ask for the student’s assets am i supposed to count that leftover financial aid money?
thank u!!!! :)
@rosie bell, there's a lot here, so we'll answer on the next episode of our podcast. Tune in for the answer on or after 10/29/20. www.voiceamerica.com/show/2430/getting-in-a-college-coach-conversation
Can you talk about how financial aid will be affected if the dependent student gets a part time job? Also what a student should do with their money earned from their part time job in order to maximize their financial aid? Please? Thank you!
Student income less than about $7,000/yr doesn't affect the aid calculations at all. If that money is saved, though, and sitting in a cash/checking/savings/investment account at the time the aid application is filed, it could result in a reduction in financial aid eligibility of about 20% of the amount of the savings. The only type of account that would be totally invisible to the financial aid process (at most, though not all, schools) would be a retirement account like a Roth IRA.
College Coach so I’m 19 dependent, and have 20 k in my bank account rn... do I not get money anymore?
College Coach ok so if I had spent most of my income that is under 6,000, my financial aid shouldn’t be heavily affected?
@@alannguyen555 You may still qualify for some need-based financial aid, but a lesser amount than if you didn't have that $20,000 asset.
@@lizzyvlogsrandomness1634 That's exactly right.
What if the older parent is not the custodial parent
Good question. Older parent within the custodial household-so either the custodial parent or stepparent in that household if applicable.