Savings account and Need Access application

[winterwind_23]

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I'm currently filling out my Need Access application for financial aid, and I'm wondering how having money saved in a savings account (~$25k) will affect the kind of financial aid I will receive. If I list what I have in my savings account, will it heavily influence how much financial aid I will receive?

My income has been below 15k for the past two tax years, and my parents will not be able to contribute anything to my education. I'm thinking that because my and my parents' incomes are so low, having this money in a savings account won't affect my financial aid package, but I'm just trying to make sure.

If having this money saved up will affect my financial aid, I guess it would be a good idea to withdraw the money before completing the application? I saved up this money over five years, living at home and being frugal, so I'd like for it to help me live slightly more comfortably in medical school.

Thanks in advance for the advice!

P.S. Cash/Savings/Checking account information was not a required question on the FAFSA, so I left it blank. Is there anyway that FAFSA could have access to this information if I didn't provide it?

 

[phuynh94]

Disclaimer: I am a fellow applicant, so I know little about how this actually works.

I don't know how NeedAccess calculates aid, but FAFSA for example, uses a formula where the student is expected to contribute 50% of income and 20% of assets (aka, your portion of the EFC). There is an income and asset protection allowance, but I forget what the amount is. Regardless, I strongly advise that you do not lie about the amount you have in your cash/savings/checking account information. (Note: withdrawing might technically reduce the figure in the latter 2, but not legally not the former.) Instead, if you want to purchase stuff in advance (bedding, furniture, flight tickets, a new car, gift cards to your favorite stores) to live comfortably or pay off any debt/medical expenses, do so now before you complete the form.

Remember that we, the applicants, are the primary ones responsible for our medical education. Any aid that medical schools provide (whether through generous grants or loans) are to help us meet the cost of attendance, not to live comfortably (though it would indeed be nice!)

 

[Rainbow Zebra]

I'm currently filling out my Need Access application for financial aid, and I'm wondering how having money saved in a savings account (~$25k) will affect the kind of financial aid I will receive. If I list what I have in my savings account, will it heavily influence how much financial aid I will receive?

My income has been below 15k for the past two tax years, and my parents will not be able to contribute anything to my education. I'm thinking that because my and my parents' incomes are so low, having this money in a savings account won't affect my financial aid package, but I'm just trying to make sure.

If having this money saved up will affect my financial aid, I guess it would be a good idea to withdraw the money before completing the application? I saved up this money over five years, living at home and being frugal, so I'd like for it to help me live slightly more comfortably in medical school.

Thanks in advance for the advice!

P.S. Cash/Savings/Checking account information was not a required question on the FAFSA, so I left it blank. Is there anyway that FAFSA could have access to this information if I didn't provide it?

Note that pension/retirement accounts are not used by FAFSA. I contributed the maximum to a Roth IRA, which doesn't get included. You can tap ROTH prinicipal to pay education bills without penalty. You can't hide the $25K, but you can contribute to a retirement plan, which is legitimately not included in your assets.

 

[p0gono]

Note that pension/retirement accounts are not used by FAFSA. I contributed the maximum to a Roth IRA, which doesn't get included. You can tap ROTH prinicipal to pay education bills without penalty. You can't hide the $25K, but you can contribute to a retirement plan, which is legitimately not included in your assets.

+1

Buy a car (if you'll need one) or put it into an IRA!


Sent from my iPhone using SDN mobile

 

[hotfish]

I reported my saving in both NeedAccess and Fafsa. I don't think it affects my financial aid at all.

 

[coldcase331]

I'm currently filling out my Need Access application for financial aid, and I'm wondering how having money saved in a savings account (~$25k) will affect the kind of financial aid I will receive. If I list what I have in my savings account, will it heavily influence how much financial aid I will receive?

My income has been below 15k for the past two tax years, and my parents will not be able to contribute anything to my education. I'm thinking that because my and my parents' incomes are so low, having this money in a savings account won't affect my financial aid package, but I'm just trying to make sure.

If having this money saved up will affect my financial aid, I guess it would be a good idea to withdraw the money before completing the application? I saved up this money over five years, living at home and being frugal, so I'd like for it to help me live slightly more comfortably in medical school.

Thanks in advance for the advice!

P.S. Cash/Savings/Checking account information was not a required question on the FAFSA, so I left it blank. Is there anyway that FAFSA could have access to this information if I didn't provide it?

It doesn't really matter. In the end the goal is to take out as little as possible to fund your education. It might benefit you in the short run to try and hide the savings, but with compounding interest, every extra dollar you take out ends up tripling by the time it is paid back. If you have to spend your savings, you'll be better off.