FAFSA assets / investments question

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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UnrequitedMichLawLuv
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FAFSA assets / investments question

Postby UnrequitedMichLawLuv » Sun Jan 25, 2009 6:49 pm

Hi all,
So I filled out my FAFSA for this year, and this question came up:

"Based on your answers to previous questions, you may skip questions about your (and your spouse's) assets

Do you want to skip questions about your (and your spouse's) assets?

Note: Some schools may require answers to these questions to determine your eligibility for school aid. However, answering these questions will not affect your eligibility for federal student aid, such as a Federal Pell Grant. "

I skipped this question since I figured why disclose what I don't have to (I have very few assets anyway). Is this the right move? If, as it says above, some schools require the answers to these questions, will those schools contact me and say, "hey, we need your assets info" or will they just say, "too bad, you didn't fill it out, no aid for you"?

Thanks!

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Brick Tamland
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Re: FAFSA assets / investments question

Postby Brick Tamland » Sun Jan 25, 2009 7:01 pm

I had a question about this too. I think in this section it asks for your bank account balance as well. I skipped it, but who knows.

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kellbell
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Re: FAFSA assets / investments question

Postby kellbell » Wed Jan 28, 2009 12:20 am

So before I read this thread, I was actually going to put a negative number since I'm already in a ton of debt.

Should I put $0 or the negative number, and does it really matter? I doubt it...just don't want it sent back or delayed due to filling it out wrong!

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23fulltimecowboys
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Re: FAFSA assets / investments question

Postby 23fulltimecowboys » Sun Feb 14, 2010 12:24 am

bump

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sanpiero
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Re: FAFSA assets / investments question

Postby sanpiero » Sun Feb 14, 2010 12:57 am

Sorry for hijacking thread, OP, but your question reminded me of a question of my own, so thank you.

I filled-out the 2010-11 FAFSA already, and I remember seeing a question about the student's real estate assets. I don't remember seeing this in prior years, at all. Can anyone confirm that this is something new?

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sanpiero
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Re: FAFSA assets / investments question

Postby sanpiero » Sun Feb 14, 2010 12:59 am

kellbell wrote:So before I read this thread, I was actually going to put a negative number since I'm already in a ton of debt.

Should I put $0 or the negative number, and does it really matter? I doubt it...just don't want it sent back or delayed due to filling it out wrong!


When they ask for how much you have in your checking account, you should write-in your checking account balance on that day (the same goes for your savings account). They know everyone has undergrad debt. If they wanted this to be part of the FAFSA, it would have been included.

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sanpiero
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Re: FAFSA assets / investments question

Postby sanpiero » Sun Feb 14, 2010 1:04 am

UnrequitedMichLawLuv wrote:Hi all,
So I filled out my FAFSA for this year, and this question came up:

"Based on your answers to previous questions, you may skip questions about your (and your spouse's) assets

Do you want to skip questions about your (and your spouse's) assets?

Note: Some schools may require answers to these questions to determine your eligibility for school aid. However, answering these questions will not affect your eligibility for federal student aid, such as a Federal Pell Grant. "

I skipped this question since I figured why disclose what I don't have to (I have very few assets anyway). Is this the right move? If, as it says above, some schools require the answers to these questions, will those schools contact me and say, "hey, we need your assets info" or will they just say, "too bad, you didn't fill it out, no aid for you"?

Thanks!


Why not just tell the truth about your assets? Do you have a bunch of money in checking/savings/MM/brokerage accounts?

If so, I'd consider leaving the fields blank but there's always the risk a school reviewing your FAFSA will frown upon such a decision.

If you're not worried about the amount of assets you have significantly impacting your aid, just fill-in the fields.

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sanpiero
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Re: FAFSA assets / investments question

Postby sanpiero » Wed Feb 17, 2010 6:22 pm

sanpiero wrote:Sorry for hijacking thread, OP, but your question reminded me of a question of my own, so thank you.

I filled-out the 2010-11 FAFSA already, and I remember seeing a question about the student's real estate assets. I don't remember seeing this in prior years, at all. Can anyone confirm that this is something new?



Bump for an answer to this question

Anonymous Loser
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Re: FAFSA assets / investments question

Postby Anonymous Loser » Thu Feb 18, 2010 4:51 pm

UnrequitedMichLawLuv wrote:Hi all,
So I filled out my FAFSA for this year, and this question came up:

"Based on your answers to previous questions, you may skip questions about your (and your spouse's) assets

Do you want to skip questions about your (and your spouse's) assets?

Note: Some schools may require answers to these questions to determine your eligibility for school aid. However, answering these questions will not affect your eligibility for federal student aid, such as a Federal Pell Grant. "

I skipped this question since I figured why disclose what I don't have to (I have very few assets anyway). Is this the right move? If, as it says above, some schools require the answers to these questions, will those schools contact me and say, "hey, we need your assets info" or will they just say, "too bad, you didn't fill it out, no aid for you"?

Thanks!


The information you provided on your FAFSA meets the criteria for what the Department of Education calls a "simplified EFC formula." Under the simplified EFC formula, student assets are not factored into the EFC calculation. As far as federal financial aid is concerned, it doesn't matter if you provide that information on your FAFSA or not, as it isn't considered in calculating your EFC. Under the simplified formula, you could have assets of $0 or $6,000,000,000, and your eligibility for federal financial aid would be unchanged.

The information is, however, available in your SAR, the report that is sent to the various educational institutions you have selected. Some schools may use this to determine eligibility for institutional aid. Basically, you are providing this information on your FAFSA as a convenience for the individual schools, as this saves them the trouble of collecting this information through the use of some separate institutional form.

For the 2010-2011 award year, an independent student qualifies for the simplified EFC formula
if both (1) and (2) below are true:
(1) Anyone included in the student’s household size (as defined on the FAFSA) received
benefits during 2008 or 2009 from any of the designated means-tested Federal benefit
programs: the SSI Program, the Food Stamp Program, the Free and Reduced Price
School Lunch Program, the TANF Program, and WIC; OR
the student and student’s spouse (if the student is married) each meet one of the
following conditions: filed or is eligible to file a 2009 IRS Form 1040A or 1040EZ or is
not required to file any income tax return; OR
the student (or the student’s spouse, if any) is a dislocated worker.
AND
(2) The student’s (and spouse’s) 2009 income is $49,999 or less.
• For tax filers, use the student’s (and spouse’s) adjusted gross income from 2009 Form
1040A or 1040EZ4 to determine if income is $49,999 or less.
• For non-tax filers, use the income shown on the student’s (and spouse’s) 2009 W-2
forms (plus any other earnings from work not included on the W-2s) to determine if
income is $49,999 or less.

source: http://ifap.ed.gov/efcformulaguide/atta ... 102011.pdf


I really don't understand why people on TLS get so worked up over seeking to exclude assets from their FAFSA reports. Not only do very few of the posters on here likely trigger the criteria that require asset reporting (anyone who can file a 1040EZ and makes under 50k is excluded), but for those who are required to report assets, only a small percentage of the value of those assets is factored into the EFC calculation. You'd need to have something close to $60,000 in reportable assets (which, of course, excludes retirement accounts and the student's own home) before there would be any real reduction in eligibility.

Moreover, you can have a really high EFC and still qualify for the full range of subsidized Stafford loans. Hell, my EFC was over 25000 and I was awarded several thousand dollars in Perkins loan funding.

flowylime
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Re: FAFSA assets / investments question

Postby flowylime » Thu Feb 18, 2010 5:23 pm

sanpiero wrote:
sanpiero wrote:Sorry for hijacking thread, OP, but your question reminded me of a question of my own, so thank you.

I filled-out the 2010-11 FAFSA already, and I remember seeing a question about the student's real estate assets. I don't remember seeing this in prior years, at all. Can anyone confirm that this is something new?



Bump for an answer to this question



Nope, that's been around for at least the past three years, probably longer. (I'm a financial aid counselor.)

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sanpiero
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Re: FAFSA assets / investments question

Postby sanpiero » Thu Feb 18, 2010 7:35 pm

flowylime wrote:
sanpiero wrote:
sanpiero wrote:Sorry for hijacking thread, OP, but your question reminded me of a question of my own, so thank you.

I filled-out the 2010-11 FAFSA already, and I remember seeing a question about the student's real estate assets. I don't remember seeing this in prior years, at all. Can anyone confirm that this is something new?



Bump for an answer to this question



Nope, that's been around for at least the past three years, probably longer. (I'm a financial aid counselor.)


Thanks! do you have any idea how much in real estate assets would trigger a reduction in the $20,500 baseline Stafford eligibility? do real estate assets affect your ability to qualify for GradPlus?

Thanks again for your help.




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