FAFSA (Free Application for Federal Student Aid) question
FAFSA (Free Application for Federal Student Aid) question
My oldest daughter is a senior in an ivy league school. Because we didn't know the 'floating' issue, we have had paid so much tuition for the last four years and now we are pretty much out of cash. Then, I realize we have an on-line stock trading account that we could get some cash out. We have not traded for the last 5 or 6 years and they don't send us any paper reports. That's why I almost forgot this account exists. And I dont' think I report it on the FAFSA. My question is if I sell all the stock, about 7k, to pay for my daughter's tuition, would it affect my son's FAFSA report? He is going to college next fall.
Re: FAFSA question
Up to 5.6% of parental assets are counted in financial aid. Whether the assets are in stocks or cash is not relevant. If the stock account is not a retirement account (i.e. 401k, IRA, etc.), then it should have been reported on the FAFSA.
Re: FAFSA question
This account should have been reported on your FAFSA. If you spend all the money, then the account won't exist and it won't have to be reported on son's FAFSA.suming wrote: That's why I almost forgot this account exists. And I dont' think I report it on the FAFSA. My question is if I sell all the stock, about 7k, to pay for my daughter's tuition, would it affect my son's FAFSA report? He is going to college next fall.
Re: FAFSA question
But the parent's income would go up by the amount of the capital gain; income is reported I assume (having never had the joy of filling out a FAFSA).livesoft wrote:This account should have been reported on your FAFSA. If you spend all the money, then the account won't exist and it won't have to be reported on son's FAFSA.suming wrote: That's why I almost forgot this account exists. And I dont' think I report it on the FAFSA. My question is if I sell all the stock, about 7k, to pay for my daughter's tuition, would it affect my son's FAFSA report? He is going to college next fall.
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Re: FAFSA (Free Application for Federal Student Aid) questio
If you sell the stock this year and use it for your daughter's aid, it will not affect your son for the Fall of 2013. You will not have to report the amount. The questions on the FAFSA (numbers 88 & 89) ask about your (parent) total cash and total investments "as of today". You will fill out the FAFSA for your son in January of 2013, so by then the investment would have been sold. Now, if you have some of the 7k left in the bank somewhere then you can report that as the total sum with everything else.
There is not much weight on your investments, as far as the FAFSA is concerned regarding EFC. It is primarily concerned with the parents/student's earned incomes. They only raise red flags when what is reported on your 1040 does not mesh with amounts put on the FAFSA for earned incomes. And it is the school that raises the red flag, not FAFSA. Each school is different.
Also, if your daughter is still enrolled in school for Fall 2013 there may be an advantage (financially) for having multiple students in the household enrolled in college simultaneously.
There is not much weight on your investments, as far as the FAFSA is concerned regarding EFC. It is primarily concerned with the parents/student's earned incomes. They only raise red flags when what is reported on your 1040 does not mesh with amounts put on the FAFSA for earned incomes. And it is the school that raises the red flag, not FAFSA. Each school is different.
Also, if your daughter is still enrolled in school for Fall 2013 there may be an advantage (financially) for having multiple students in the household enrolled in college simultaneously.
Re: FAFSA (Free Application for Federal Student Aid) questio
I appreciate so much for everyone's reply.
Re: FAFSA (Free Application for Federal Student Aid) questio
83. What was your parents’ adjusted gross income for 2011? Adjusted gross income is on IRS Form 1040—line 37; 1040A—line 21; or 1040EZ—line 4.
84. Enter your parents’ income tax for 2011. Income tax amount is on IRS Form 1040—line 55; 1040A—line 35; or 1040EZ—line 10.
If you (or your parents) need to file a 2011 income tax return with the Internal Revenue Service (IRS), we recommend that you complete it before filling out the FAFSA. If you have not completed your return yet, you can submit your FAFSA now using estimated tax information, and then correct that information after you file your return.
This is for the 2012-2013 school year. For 2013-2014, you will use your 2012 tax return, which will show your added income. It may make next to no difference in aid, but the capital gains do get reported.
Re: FAFSA (Free Application for Federal Student Aid) questio
Please explain what you mean by "floating issue". I am not familiar with it either.suming wrote:My oldest daughter is a senior in an ivy league school. Because we didn't know the 'floating' issue,....
Re: FAFSA (Free Application for Federal Student Aid) questio
Please explain what you mean by "floating issue". I am not familiar with it either.
Floating means you got a high amount of financial aide from the school for freshman year - $16k in my daughter's case. So we thought we could afford to send her to the school. It's 8K for the 2nd year, and 4k for the 3rd year. Therefore, EFC is getting higher and higher each year because of the much less financial aide and higher tuition each year.
Floating means you got a high amount of financial aide from the school for freshman year - $16k in my daughter's case. So we thought we could afford to send her to the school. It's 8K for the 2nd year, and 4k for the 3rd year. Therefore, EFC is getting higher and higher each year because of the much less financial aide and higher tuition each year.
Re: FAFSA (Free Application for Federal Student Aid) questio
Can I please take advantage of this thread and ask a s related quesion?
I have 2 in college now, one full time and 1 part time.
I also have a third child who will be going to college full time next year.
We have a home equity line of credit for $135k.
My nephew wants to buy a home and needs a loan for about 8 months.
If I loaned him $100k, would it increase my indebtedness on FAFSA? Would it make a difference?
I have 2 in college now, one full time and 1 part time.
I also have a third child who will be going to college full time next year.
We have a home equity line of credit for $135k.
My nephew wants to buy a home and needs a loan for about 8 months.
If I loaned him $100k, would it increase my indebtedness on FAFSA? Would it make a difference?
Re: FAFSA (Free Application for Federal Student Aid) questio
This loan would not be a debt to you, it would be an asset much like buying a $100K bond from your nephew. It is your nephew's debt.
Assets are reported on the FAFSA, but debts are not, so I don't think this loan to nephew would affect your FAFSA result at all.
Assets are reported on the FAFSA, but debts are not, so I don't think this loan to nephew would affect your FAFSA result at all.