Naive to Process of Applying for Financial Aid, please help...

<p>Ok, when you apply for FA, you have to list all your assets right? The cost of your home, the amount of investments and so on.....</p>

<p>My question would be if one's parents both were retired and at face value looked poor with no present income flowing in. On top of that they live in a poverty stricken high violence neighberhood that has evolved since they moved there 30+ plus years ago. Even though they have the money to move, they are so stubborn and disgusted by the thought of changing homes because you grow attached to it..</p>

<p>i know personally alot of people who are in this situation who are worth in fact in the millions in total assets ranging from 1-3 million but maintain their happy living of frugalness like they dont have 2 cents to rub together.</p>

<p>So if there are parents who have alot of " Hidden money" in savings accounts, investments and so on but dont spend money on house, clothes, cars and so on and they have kids who want to go to college, can they not disclose all their hidden assets and when the the FA company examines their situation- 2 non working parents, live in bad neighberhood with a home of low value and so on would grant them FA assistance.</p>

<p>I know its illegal to withold info like this but im just asking. If you fail to mention all your "hidden" assets on the application, would the FA company have the ability to type your name in the computer network and gain access to view all your assets or does the FA company go by what you state as fact on the application?</p>

<p>Please clear this up for me?</p>

<p>FAFSA forms are often compared to tax forms filed. If someone reported no savings or investments on FAFSA, but reports $1000 in interest on the 1040 form, someone is likely to be suspicious.</p>

<p>Not a good idea.</p>

<p>Well that's the thing</p>

<p>if you are retired and have minimal income just from interest on investments during the anual year, wouldnt this look like you are a prime candiate for FA.</p>

<p>Like i said im naive to the process of FA. What's a 1040 form?.Im in the situation i stated- my parents both dont work ( retired) so there is no present income, we live in fairly bad neighberhood but we have investments not near though the numbers i mentioned.</p>

<p>My dad told me when i started college, he inquired about if i would be eligeable for FA taking into account all of our assets, and the financial advisor said NO purely looking at investments because if you looked at our present income its very low</p>


<p>Is it true that a FA COmpany like FASFA does not look at someone's retirement funds? I got this reply on another part of this site.</p>

<p>Because im pretty sure most of fathers assets are in roth IRA accounts. WOuld this qualify me for me now?</p>

<p>Can i have some feedback on this?</p>

<p>I really do not know how retirement accounts are treated. Have you tried looking it up on the FAFSA website? Or perhaps there are others on cc who know more about it than I do.</p>

<p>I don't think accounts are considered the same as contributions.
PROFILE ( private schools) may consider other assets including equity as available for school expenses.
age is considered ( I am assuming they are both over 65- and didn't take early retirement from Microsoft ;) )
parent income is considerd at lower rate than students</p>

<p>If you are worried about assets being considered you may want to stick to schools that only require FAFSA
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<p>Assets are considered as part of the financial picture though they are not hit as hard as income. Qualified retirement funds are generally not included though some schools are beginning to change that policy. Also withdrawals from these plans are counted as income which can be a whomping assessment. </p>

<p>As to "hidden" assets, if they are hidden from the IRS as well or hidden in household items such as valuables, oriental rugs, jewelry, etc, they will not be counted. But bear in mind that FAFSA is a federal form and to whom you are lying. Not good if you get caught.</p>

<p>I personally know a student who lives with his retired grandparents in a nice suburban neighborhood. Got TONS of aid.</p>



<p>Money that is in traditional savings (even CDs) is not hidden. It must be reported as an asset on the finaid application forms. Monies that are in retirement accounts are not counted as assets on finaid applications, but there is a significant tax penalty for withdrawing these funds prior to retirement...and if they are withdrawn they ARE considered income. Current contributions (for the current year) ARE considered income for that year. I have to say, I find it hard to believe that one could "hide" 1-3 million dollars in assets. Even the interest off of these accounts (and that WOULD be considered unearned income for the year) would be very significant AND would need to be reported on the finaid aps.</p>

<p>My husband is someone who benefitted from grandparents. At the time he went to college, his mother had no income, no assets and was basically getting handouts from her parents, living off their largesse. She lived in a house they owned and they bought many things needed or wanted. Grandparents are not responsible for college education costs; parents are.</p>

<p>As to hiding money, if one enters the illegal arena, there is no end to the possibilities one can have. You can steal the money, kill for the money, etc. Why stop at hiding what you have when you can get more that way?</p>