How should I keep my money hidden from financial aid inquiries?

Paying for College
1

<p>I have ~$5000 (saved from work) that I intend to use for college expenses, but if I have that money in my bank account, then my school’s financial aid office will see that and factor that into aid decisions, right? Currently I’ve been keeping my money in a secure deposit box, but when it comes time to make payments (e.g. now), how can I make them without giving them the impression that I “don’t need” aid? </p>

<p>Is a PayPal account safe from such inquiries? How does a PayPal debit card work?</p>

<p>I’m not rich by any means; it’s very frustrating that (as far as I know) working for years and saving money will result in me receiving less financial aid than someone who squanders all of their money.</p>

2

<p>Many schools will expect students to contribute $3,000 from summer earnings every year- and that amount is factored into EFC.
Not putting it in an acct won’t change that amount.
Additionally, schools will expect often times, to receive signed copies of 1040 forms including w-2s, so unless you are a drug dealer or otherwise are paid under the table, your income will be known to them.
However, you can save a bit by spending part of it down on things you need for college- prebooking airfare, updating a computer, or even new shoes, will lower the amount you will be expected to contribute</p>

3

<p>ziddy - When you complete the FAFSA there is a section for student income and assets. If you report the $5,000 savings 20% or $1,000 of it is considered available for college expenses.</p>

<p>Here is the website from which I obtained the 20% figure:</p>

<p><a href=“http://www.finaid.org/savings/529plans.phtml[/url]”>http://www.finaid.org/savings/529plans.phtml&lt;/a&gt;&lt;/p&gt;

<p>The need-based financial aid treatment of family assets depends on whether they are owned by the student or the parent. During need analysis, the federal financial aid formula assesses a percentage of student assets and a percentage of parents assets. Student assets are assessed at a flat rate of 20% (effective July 1, 2007). Parent assets are assessed on a bracketed scale with a maximum rate of 5.64%. Parent assets are also partially sheltered by an asset protection allowance based on the age of the older parent (around $45,000 for most parents of college-age children). Parent assets in retirement plans and the net market value of the family’s primary residence are also sheltered, as well as small businesses owned and controlled by the family. Accordingly, the impact of a college savings plan on need-based financial aid depends on whether the plan is considered a student asset, a parent asset, or neither. </p>

<p>So, $1,000 of your $5,000 savings will be considered. I understand your concern about your saving vs. those who “squander” their money. My D saved all her birthday and Christmas money from relatives. When time came to complete the FAFSA she had to report her savings. I agree, it’s not fair, but that that is how the system works.</p>

<p>Here’s what MIT says about student summer earnings and is a good representation of what most colleges expect:</p>

<p><a href=“MIT Student Financial Services”>MIT Student Financial Services;

<p>Replacing your summer earnings expectation
We expect undergraduate financial aid recipients to pitch in and help with their expenses by borrowing and/or working during the academic year (we call this your self-help) and by working during the summer (we call this your summer earnings expectation). The combination of your self-help and your summer earnings expectation are your student contribution.</p>

<p>Our summer earnings expectation varies by class:
$1,500 for freshmen
$2,200 for sophomores
$2,500 for juniors
$2,800 for seniors
Your student contribution listed on your financial award letter is ordinarily the same as your summer earnings expectation unless you have significant savings of your own or high earnings during the prior tax year – in which case your student contribution will be greater than your summer earnings expectation.</p>

<p>Check the financial aid page for your university to see what they have to say about summer earnings.</p>

<p>Good luck.</p>

4

<p>You could just give it all to a family member (not immediate family) like a cousin or something, and just have the money in his account and pretend you have nothing, when you need the money you just take it out of cousin or uncle’s or whoever’s account.</p>

5

<p>Unless you’re 18, you can’t gift any of it. However, you could legally lend it and charge a nominal amount of interest to a parent (if they’re under the asset protection allowance), or another relative. No money, no assessment, and that’s legal.</p>

6

<p>Why can’t you just tell the truth. You’ve obviously learned to work hard toward accomplishing your goals. Adding the virtue of honesty would take you even further.</p>

7

<p>If you got that money from a ‘legal’ job, you would have a W-2, you may have to file Income Tax. In short you will have a paper trail. If you lie and get audited, the school could your rescind their offer of admission and/or Fin aid.</p>

8

<p>you could legally and ethically “hide” it by spending it on the school supplies you will need, like a computer, etc. do not cheat, but do make use of the system by spending down your asset before you have to declare it on FAFSA</p>

9

<p>Yea, buy a computer, a boombox and stuff that you’ll need for college the next year, except buy everything you need before you actually turn in Fafsa</p>

10

<p>You can give it to a family member, like a sister or grandparent. That’s totally legal.</p>

11

<p>chrislo23: you really seem to be expert in cutting corners.</p>

12

<p>According to OP’s opening sentence, OP saved the money for college. Its purpose was to pay for “college expenses.” Now it is time to pay for college, so spend it as required.</p>

13

<p>Why can’t you just withdraw all of it from the bank?</p>

14

<p>It doesn’t matter if it’s in the bank or under your mattress – under the law, it is reportable. </p>

<p>Folks, we’re talking a levy of $1000 a year. How could it be worth it to one’s integrity and dignity to find ways of hiding the $? It was saved for college, so spend it for college.</p>

15

<p>Ziddy, I like Standrews post best of all, but, first, please get that money out of the safe deposit box and put it into some sort of productive investment vehicle - I believe Citibank offers a 4.5% interest savings account, and there are others - the interest you’ll earn on the savings account may offset the zing on the FAFSA, depending on how your aid package works itself out. </p>

<p>Second - you are obvious very good at saving money, and at working hard towards a goal. Please take some time to get acquainted with current banking regulations, especially those that address the requirement of your financial institution to file SARs (Suspicious Activity Reports). It’s not a good idea to attempt to “hide” money, because someone is eventually going to notice anomolous behavior, and your actions may invite scrutiny and inquiry. There’s nothing illegal about keeping money in a safe deposit box, or under a mattress, etc. however, you’re treading out onto thin ice if you are doing so in order to conceal assets for some other economic gain. (I am not a lawyer, CPA or banker however - you should get the opinion of experts in these disciplines if you want to clarify what the law says you can and cannot do.)</p>

16

<p>So if I withdraw 0.10 cents from the bank and keep it in a jar, I am a criminal?</p>

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<p>no you’re not…do what you want…</p>

18

<p>No one said anything about the OP or anyone else being a criminal (although starting a thread title with “How do I keep my money hidden…” may be an unfortunate choice of words). In the post 9/11 banking environment financial institutions have staff who are trained to watch for anomolous behavior and also have technology that tracks it. In some situations there is a legal requirement to report same to federal law enforcement authorities. It’s a far more productive idea to put money into savings, or some interest bearing account, for several reasons. It’s not illegal to keep money in jars, under mattresses, in shoe boxes, or, like the OP, even in safe deposit boxes, as a matter of personal preference. It may be illegal to do so in an effort to avoid detection for further economic gain.</p>

19

<p>What is illegal is to say you have 10 dollars when you really have 20 dollars, regardless of whether it is in a bank, a jar, or in the hands of a relative. This is pretty simple, folks.</p>

20

<p>I am now playing with the efc calculator and got it to give me my current exact efc. I add 90K of savings and my efc is the same</p>