Will having more money in my bank account result in less financial aid?

[student113]

Hi,

If I take a job during my application/gap year and save up some money, when it comes time for schools to assign me financial aid, would that make me have "less need"?

I'm not exactly sure how schools do this, but it doesn't look to be entirely merit-based, and I heard parents' financial situation don't have to be reported for grad students?

---

Members don't see this ad.

 

[mvenus929]

I'm not exactly sure how schools do this, but it doesn't look to be entirely merit-based, and I heard parents' financial situation don't have to be reported for grad students?

In theory. For FAFSA purposes, and thus federal purposes, your parents information doesn't matter. Certain schools, though, will require your parents' information for institutional aid.

 

[ThatQuestionGuy]

Hi,

If I take a job during my application/gap year and save up some money, when it comes time for schools to assign me financial aid, would that make me have "less need"?

I'm not exactly sure how schools do this, but it doesn't look to be entirely merit-based, and I heard parents' financial situation don't have to be reported for grad students?

I think the schools are the one giving you need-based grants, at least that's how it is at my school and they def. wanted to see your parents tax forms

 

[OhioDoc]

Hi,

If I take a job during my application/gap year and save up some money, when it comes time for schools to assign me financial aid, would that make me have "less need"?

I'm not exactly sure how schools do this, but it doesn't look to be entirely merit-based, and I heard parents' financial situation don't have to be reported for grad students?

While the federal government doesn't publish the formula which they use to calculate the estimated family contribution (EFC), which is the number that schools use to determine your eligibility for aid, i think it is safe to assume that a greater amount of savings results in a greater EFC - which will reduce your eligibility for aid. That being said, need based aid for medical schools is not terribly common and most schools are going to require your parental information in deciding whether to give you this need based aid (it is true that grad students are classified as FAFSA independents, but most schools still want this info). So unless your parents make essentially nothing, I'm not sure if your savings would affect your aid a whole lot.

 

[TexasMDtobe]

It depends on the situation I'm sure, but I saw my EFC shoot up after I reported the money I had saved during my gap year (several thousand). However, it did not appear to effect my financial aid as I was still offered the full amount for the Stafford loans (subsidized and unsubsidized) and even got a grant of $1500. Hope this helps. . .

 

[fred213]

While the federal government doesn't publish the formula which they use to calculate the estimated family contribution (EFC)

Yes they do publish it:

http://www.ifap.ed.gov/efcformulaguide/attachments/111609EFCFormulaGuide20102011.pdf

 

[student113]

Hmm I see. I will probably save more than 20,000 during my gap year.

Aren't there easy ways to get out of this though? What if I just save the money in my girlfriend's account?

 

[ErmaBoBurma]

The financial aid officer at my future school said that any earning you have the year before school starts will go toward your EFC. The federal gov expects you to save 40% of your salary to go toward school, and your savings will be counted as well. I have a somewhat normalish paying research job and my personal (not parents) EFC is 12000. Did I save this much to go toward tuition? Of course not. I have bills to pay. But it still shows up in your EFC. BTW, I said my expected savings would be 0 at the start of school, so I'm pretty sure this all came from my salary.

 

[student113]

Wow that sucks. So like I said, can't I temporarily keep my money in a friend's account until after med school starts?

 

[Cyradis]

Hmm I see. I will probably save more than 20,000 during my gap year.

Aren't there easy ways to get out of this though? What if I just save the money in my girlfriend's account?

It's basically honor system - it's not as if they actually go and verify the information with your bank anyway, even if you kept it in your own account.

With that said - do you REALLY want to start your medical career/education by defrauding their financial aid office (hiding your money in someone else's account would probably qualify as such)?

Unless of course, that money actually does belong to your girlfriend or you owe her copious amounts of money for something

 

[ErmaBoBurma]

I don't remember which school asked me which questions.... but for one financial aid form I had to fill out "expected savings" - which I put 0. At another school they asked my exact amount in the bank at that time point (sometime in March?). In retrospect I kinda wish I had said 1000 or something low like that, but I really didn't want to fail an audit based on something so silly at the beginning of med school.

So yeah... it sucks, but if you know what school you are trying to get into it might be worth calling the financial aid office of that school to figure out how they calculate EFC. It may or may not matter in your case. And either way, you can't hide a salary.