Some Questions

[Haybrant]

Hi,

I have a few questions about applying for financial aid; I am filling out fafsa and need access and they ask for how much money I have in the bank; is this the right time to go out and buy a car or that expensive stereo system Ive been eyeing so that it seems like I dont have as much $ in the bank.

I think what my real question is, is how does the school determine financial aid? Where i plan on attending, they say roughly the total amount - amount parents/students can contribute = aide. How do they figure out the amount that the parents/student can contribute?

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[tlew12778]

My sister just went through this with my niece and a financial aid advisor (from a bank). She said that they have $50k in the bank bc they are plannning on doing an addition to their house plus her hubs makes commission in his job so he 1099s his taxes so they had his tax payment in that $50k as well. The finaid advisor said to subtract the house addition cost plus the tax costs from their savings when they report it on their FAFSA. Actually, she had to do an amendment to the original FAFSA bc she did not subtrat it the first time. It made their EFC comes down quite a bit.

So basically, yes you can. But keep in mind that your student loans probably will not cover your entire tution and living expenses so you will need cash for that unless your school is going to give you scholarships or grants.

FWIW, I never had any money in the bank as an undergrad (or as a grad student for that matter) and whatever little I put on the FAFSA they never asked me to contribute towards my tuition. My undergrad determined EFC through the FAFSA, then they maxed out my staffford and perkins, then they made up the rest in grants. My grad school just said "pay this much" period. Fortunately my loans covered that amount.

 

[mpp]

If you want the stereo or car then buy it. Having the money or not will likely not change your student loan situation for medical school. It may change your eligibility for subsidized loans but you will still be eligible for the maximum $38,500 in Stafford loans per year.