My understanding is that they ask for bank statements when filling out the FAFSA. Normally this wouldn’t be an issue at all however in September of 2017 we were hit hard by hurricane Irma. As a result our house incurred major damage and the insurance company issued a rather large check which we deposited into our bank account. Now these funds are going to be used to pay for damages but in the mean time there is a significant amount of money in our bank account that normally wouldn’t be there. How is this going to affect my FAFSA?
The FAFSA asks for all of the balances in your bank accounts…as of the day of filing…but you do NOT send your bank statements.
Get the work done on your house before you submit the FAFSA. Is this for a student entering college for fall 2018 or fall 2019.
@thumper1 fall 2019.
Well…can you get the work done on your house…and get that money out if your bank account before you file the 2019-2020 FAFSA form?
It won’t be available even for filing until October 1. And your schools probably have a later deadline than that for submission…just don’t miss any early deadlines if needed.
Honestly…get the house repaired and the money out of your account before say…October 15.
@thumper1 Ok thank you very much. I wasn’t aware that we would have until October. We were worried because some colleges were asking about a pre-read for FA since he’s a recruited athlete. We have the 2017 tax returns but they sure don’t match the bank account lol.
Because they are doing a pre-read, just explain what the money is for, even submitting estimates when you submit the bank statements. Pre-reads are a little different because it is an actually person looking at the accounts and papers, not a computer. I can’t believe a school wouldn’t be understanding about the hurricanes.
Agree with @twoinanddone
Any chance you have any paperwork from the insurance company that documents the amount of the settlement for your repairs? If so…that should help. It’s for a crisis event that you were given insurance money. Right?
@twoinanddone Will do thanks. So you do have to submit your bank statements?
@thumper1 I have the check stub from the insurance company. Yes it is for extensive repairs due to the hurricane.
@moscott You do not submit bank statements with the Fafsa. You just have to honestly answer the question on the form about how much money you have in your bank account on the day you file.
I have no idea if you have to show your bank statements for the pre-read.
For the pre-read, you submit whatever they ask you to submit. I can see a school asking for statements and account balances for all accounts. You are asking them to give you a good estimate of what the financial aid will look like months before the CSS and FAFSA CAN be filed (usually July when FAFSA/CSS are filed in Oct). The schools are pretty experienced in knowing what they’ll need to make that estimate. They can figure out that if you have an insurance check in May for a new roof that hopefully you’ll have that new roof by Oct when you file FAFSA so the money won’t be in your account. If the money is actually there in Oct, you’ll have to file FAFSA with that big number on it, and then file an appeal with the documentation for the new roof.
But only submit what they ask for. If they don’t ask for bank records, don’t send them.