Question for the Money Doctors
Question submitted on Feb 16, 2011.
QuestionHello! I will be completing the FAFSA early next year (2012)for my daughter who will be attending college that fall. I am trying to maximize my chances in receiving college grant money from either the federal or state. My question is this: I have a Credit Union savings account in her name. Should I transfer that money to my account for purposes of FAFSA? I am on the account as a signer as well. Thanks
Thanks for the question. The inner workings of the FASFA are really too detailed to discuss on this forum; however, I believe that it will look at your assets as well as your daughter's assets. The primary driver of financial aid will be your income this year (tax year 2011 if she is going to school in 2012), which helps determine the Expected Family Contribution. If your income is above a certain amount, you most likely won't qualify. If you are under the limit (which is not a set figure to my understanding), then you will probably get some aid. The amount of aid is typically based on the "financial need" - the financial need is the cost of college less the expected family contribution (EFC). Therefore, you may get more aid for a more expensive college if you qualify. If you think that your daughter has a good chance of receiving financial benefits and want to maximize them, you may want to talk to a college planning expert in your area. He or she may be able to recommend actions that you would not consider. I hope this helps.
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