FASFA question

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A12345
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Joined: Fri Dec 24, 2010 3:53 am

FASFA question

Postby A12345 » Sun Jan 02, 2011 4:05 pm

If i have a fairly large sum of money withdrawn from my checking account prior to completing the fasfa, would this raise any red flags or cause problems down the road?

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Eugenie Danglars
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Re: FASFA question

Postby Eugenie Danglars » Mon Jan 03, 2011 6:25 am

A12345 wrote:If i have a fairly large sum of money withdrawn from my checking account prior to completing the fasfa, would this raise any red flags or cause problems down the road?


If you need to pay for something legit, no. If you're trying to scam the US government, maybe.

There is a possibility that you could be audited, either out of suspicion or randomly. It happened to me in college (the random kind, I suppose). I had to turn in bank statements over time and all, and I'm sure if was missing a chunk of change with no explanation, things could go badly.

tl;dr: Don't try to cheat the feds.

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eandy
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Re: FASFA question

Postby eandy » Mon Jan 03, 2011 6:31 am

It is highly doubtful you'll get need based aid anyway for LS, even if you got it in undergrad. Don't worry about how much is in your bank account, it won't change the end result. Only a few schools do anything based on need.

A12345
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Joined: Fri Dec 24, 2010 3:53 am

Re: FASFA question

Postby A12345 » Mon Jan 03, 2011 12:51 pm

Eugenie Danglars wrote:
A12345 wrote:If i have a fairly large sum of money withdrawn from my checking account prior to completing the fasfa, would this raise any red flags or cause problems down the road?


If you need to pay for something legit, no. If you're trying to scam the US government, maybe.

There is a possibility that you could be audited, either out of suspicion or randomly. It happened to me in college (the random kind, I suppose). I had to turn in bank statements over time and all, and I'm sure if was missing a chunk of change with no explanation, things could go badly.

tl;dr: Don't try to cheat the feds.



apparently I dont even have to disclose my assets on the fasfa anyways

bdubs
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Joined: Sat Feb 06, 2010 2:23 pm

Re: FASFA question

Postby bdubs » Mon Jan 03, 2011 1:01 pm

A12345 wrote:
Eugenie Danglars wrote:
A12345 wrote:If i have a fairly large sum of money withdrawn from my checking account prior to completing the fasfa, would this raise any red flags or cause problems down the road?


If you need to pay for something legit, no. If you're trying to scam the US government, maybe.

There is a possibility that you could be audited, either out of suspicion or randomly. It happened to me in college (the random kind, I suppose). I had to turn in bank statements over time and all, and I'm sure if was missing a chunk of change with no explanation, things could go badly.

tl;dr: Don't try to cheat the feds.



apparently I dont even have to disclose my assets on the fasfa anyways


Yes, I think you do. There is a line for bank account balance.

trudat15
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Re: FASFA question

Postby trudat15 » Mon Jan 03, 2011 1:32 pm

bdubs wrote:
A12345 wrote:
Eugenie Danglars wrote:
A12345 wrote:If i have a fairly large sum of money withdrawn from my checking account prior to completing the fasfa, would this raise any red flags or cause problems down the road?


If you need to pay for something legit, no. If you're trying to scam the US government, maybe.

There is a possibility that you could be audited, either out of suspicion or randomly. It happened to me in college (the random kind, I suppose). I had to turn in bank statements over time and all, and I'm sure if was missing a chunk of change with no explanation, things could go badly.

tl;dr: Don't try to cheat the feds.



apparently I dont even have to disclose my assets on the fasfa anyways




Yes, I think you do. There is a line for bank account balance.



My fafsa asked me if I wanted to disclose assets. I picked no and no line popped up. If I change my answer to yes, then the bank account balance line pops up. Do I have to press yes?

bdubs
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Re: FASFA question

Postby bdubs » Mon Jan 03, 2011 1:39 pm

trudat15 wrote:
bdubs wrote:
A12345 wrote:apparently I dont even have to disclose my assets on the fasfa anyways




Yes, I think you do. There is a line for bank account balance.



My fafsa asked me if I wanted to disclose assets. I picked no and no line popped up. If I change my answer to yes, then the bank account balance line pops up. Do I have to press yes?


Perhaps only if you are a dependent does it give you that option because I am independent and wasn't offered an option.

trudat15
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Re: FASFA question

Postby trudat15 » Mon Jan 03, 2011 1:58 pm

bdubs wrote:
trudat15 wrote:
bdubs wrote:
A12345 wrote:apparently I dont even have to disclose my assets on the fasfa anyways




Yes, I think you do. There is a line for bank account balance.



My fafsa asked me if I wanted to disclose assets. I picked no and no line popped up. If I change my answer to yes, then the bank account balance line pops up. Do I have to press yes?


Perhaps only if you are a dependent does it give you that option because I am independent and wasn't offered an option.


Hmm. I'm independent as well. But I guess it cant hurt to disclose, so they'll know how poor I am. Going to update.

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northwood
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Re: FASFA question

Postby northwood » Mon Jan 03, 2011 2:00 pm

if you dont have a lot of money in your bank account, disclose it. Or if you have a lot of bills ( car payments, student loans etc) and you need to justify the montly payments disclose. Dont make a mad dash to the bank and withdraw. It may bring up a red flag. Just dont add more than necesssary to your savings account, if possible.

bdubs
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Re: FASFA question

Postby bdubs » Mon Jan 03, 2011 2:05 pm

northwood wrote:if you dont have a lot of money in your bank account, disclose it. Or if you have a lot of bills ( car payments, student loans etc) and you need to justify the montly payments disclose. Dont make a mad dash to the bank and withdraw. It may bring up a red flag. Just dont add more than necesssary to your savings account, if possible.


+1 - Rather than withdrawing money I am paying my bills a little ahead of when I would usually do so because FAFSA doesn't look at net cash but only cash on hand. In an audit I would expect you would need to justify a large cash withdrawl whereas a direct debit payment of bills etc.. would probably be an appropriate use of funds.

trudat15
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Re: FASFA question

Postby trudat15 » Mon Jan 03, 2011 2:29 pm

bdubs wrote:
northwood wrote:if you dont have a lot of money in your bank account, disclose it. Or if you have a lot of bills ( car payments, student loans etc) and you need to justify the montly payments disclose. Dont make a mad dash to the bank and withdraw. It may bring up a red flag. Just dont add more than necesssary to your savings account, if possible.


+1 - Rather than withdrawing money I am paying my bills a little ahead of when I would usually do so because FAFSA doesn't look at net cash but only cash on hand. In an audit I would expect you would need to justify a large cash withdrawl whereas a direct debit payment of bills etc.. would probably be an appropriate use of funds.


Cool. Thanks guys. Wasnt planning on withdrawing a lot except bills and my seat deposit (due early since I ED'd).

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AreJay711
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Re: FASFA question

Postby AreJay711 » Mon Jan 03, 2011 2:35 pm

I've been holding my checks. I got about 7 grand that I'm going to deposit now that its the new year. I had to make sure my employer knew though.

bdubs
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Re: FASFA question

Postby bdubs » Mon Jan 03, 2011 2:38 pm

AreJay711 wrote:I've been holding my checks. I got about 7 grand that I'm going to deposit now that its the new year. I had to make sure my employer knew though.


You guys know that you have to report this stuff on Need Access or on institutional forms, right? There is almost no point in doing this unless you think that you won't qualify for federal loans/aid without doing it. Even if it does make a difference it's shady at best and fraudulent at worst.

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northwood
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Re: FASFA question

Postby northwood » Mon Jan 03, 2011 2:53 pm

you have to report your account information. NOw, if you were to make a huge withdrawl or have thousands of dollars on hand under your mattress yes it would be very fishy, and not smart to do. If you can pay your bills ahead of time, or even pay off some of your debts, then it might be something to look into ( paying off debt is a good idea, especially when you are about to take on a lot of loans). Just be careful




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