<p>We are close to being at the 46,000 limit on assets with what we have in checking - if you get selected to be verified - do they ask for copies of your bank statements to verify that or just your tax forms? How important is that number in determining your EFC?</p>
<p>We have over that amount of assets. So far, we have no acceptances because DD applied all RDs. We have been asked for taxes and W2s but, to date, not bank statements. However, in our situation I am expecting to be asked for proof of just about everything and am ready to provide it if asked. As long as you are truthful on FAFSA, no need to worry. They might ask, they might not.</p>
<p>Do the schools or fafsa run a credit report when you apply?</p>
<p>No. Colleges don’t care about your credit rating.</p>
<p>If you decide to use federal Stafford loans there is no credit check at all. However, if you decide to use Parent PLUS loans your parent would have to qualify (although I think it may not be that hard to do so). If they are turned down, you would be able to take out additional money through Stafford.</p>
<p>What is the 46,000 limit?</p>
<p>It’s an age-based asset protection allowance. Based on the age of the older parent, a certain dollar amount in assets is “protected”. If the older parent is 48, the first $46,200 in assets are not considered available to be used to pay for college.</p>
<p>See table A5 here: <a href=“http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf[/url]”>http://www.ifap.ed.gov/efcformulaguide/attachments/101310EFCFormulaGuide1112.pdf</a></p>
<p>I have heard of a college asking for bank statements but never routinely.</p>
<p>thanks vballmom. The OP refers to being “close to the limit” and I am trying to understand this statement.</p>
<p>Does having more assets (or assets close to this 46,000 number) mean one is more likely to be audited?</p>
<p>Asset values for things like checking accounts are determined at the instant you file the FAFSA. A bank statement is not likely going to show the amount you had at that instant, unless your statement date exactly matched when you filed the FAFSA.</p>
<p>So how can a school possibly verify that those kinds of assets are correctly reported?</p>
<p>Do I have the burden of having to somehow be able to prove what I reported?</p>
<p>
No, it has nothing to do with being audited (or verified). Parents have a certain amount of asset protection based on the number of parents and the age of the older parent. Assets under that limit have no impact on the EFC. Assets over that limit are considered partially available for college expenses (up to 5.6% will go to the EFC).</p>
<p>Before this year you just had to add up your reportable assets and report them on FAFSA. Then the FAFSA formula would use your numbers and determine if your assets would impact your EFC. So, for instance, if your assets totaled $50,000 you would just report that and the EFC formula would determine the effect of those assets on your EFC.</p>
<p>This year FAFSA has a new thing called skip logic (though it is not available in every state - for instance in the state I live in there is no skipping questions - our assets are below the protected amounts but we still have to enter them). With the skip logic, instead of just saying to enter your assets it determines your asset protection allowance and asks if your assets are over that amount. So, for instance, a 2 parent family where the older parent is 50 would be asked if their assets total over $48,800 (the asset allowance for a 2 parent family where the older parent is 50). If the answer is no you don’t have to enter asset data, assets are $60,000 then you report the $60,000.</p>
<p>I see. I guess our state doesn’t use skip logic.</p>