Do personal student loans effect grant/stanford money?

Paying for College
1

<p>Let’s say I get personal loan now.</p>

<p>When filling out the FAFSA for the next school year, will I receive considerably less grant money and/or Stanford loans?</p>

<p>and one more question which is somewhat unrelated:</p>

<p>Ok, I’m turning 23 next year in June and I’ll be a college sophomore for the 2007-2008 school year. That would mean I can submit the 2007-2008 FAFSA without my parents information, and my aid award will only depend on my income only.</p>

<p>For the 2007-2008 FAFSA, I will be using this years (2006) IRS information.
So here’s the question: I’m working a really crappy job. I live with my parents who support me, so the job is not a necessity. Would it be wise to not work this tax year of 2006, so it shows my income as being very low on my IRS, thus, when submitting next years FAFSA (for the 2007-2008 school year) in June when I’m 23, I will be awarded a lot of grant money --at least that’s my plan.</p>

<p>Not sure if I explained it right --basically I would rather not work if it means getting free money for school beginning next year, than to work my butt off to pay for college out-of-pocket but as a result, not receiving any grants for having too much income. And the question is, is this possible/wise?</p>

<p>thanks.</p>

2

<p>Generally no change in FAFSA due to loans. They’re not considered income, or (usually) an asset. </p>

<p>One caveat: If the personal loan proceeds remain in liquid (savings or checking, for example) form on the date you complete FAFSA, it will count as an asset, and has to be reported. Particularly if reported as a student-owned asset, it will significantly hurt your financial aid prospects.</p>

<p>For the 07/08 school year, you have to be born before 1/1/84 to be considered independent (or meet one of the other requirements). So I don’t think you’ll make the independent cutoff until the next year, the 08/09 year, if I’m doing the math right.</p>

<p>As a dependent, you an income allowance of about $2,600 before it starts increasing your EFC. Use the FinAid calculator to see how various incomes above that might change your EFC.</p>