Should I Empty My Savings Account for FAFSA?
When it comes to paying for college, FAFSA (Free Application for Federal Student Aid) is a key part of the process. FAFSA is a form that students and their families must fill out to determine their eligibility for federal student aid. But, if you have college cash stashed in a checking or savings account in your name, should you empty it out for FAFSA?
The answer is yes, you should empty your accounts for FAFSA. For every dollar stored in an account held in a student’s name (excluding 529 accounts), the government will subtract 50 cents from your financial aid package. That means if you have $2,000 in your account, the government will reduce your financial aid package by $1,000.
It’s important to note that the government only looks at the student’s assets when determining financial aid eligibility. That means that any money in your parents’ accounts won’t be taken into consideration. However, if you have any money in your own accounts, it will be taken into consideration.
It’s also important to note that if you do empty your accounts for FAFSA, you may be able to replenish them with financial aid money. Depending on your financial situation, you may be eligible for grants, scholarships, and loans that can help you pay for college.
So, if you have college cash stashed in a checking or savings account in your name, it’s best to empty it out for FAFSA. Doing so will help you maximize your financial aid package and ensure that you get the most money possible to help pay for college.