FAFSA asking about my kid's bank account - do they actually count it?

yes they def count it but not as much as parent assets. my son had like 2k in his account and it barely affected anything. dont stress too much

Under the new FAFSA Simplification Act, student assets are still counted, but at a lower rate than before. The current assessment rate for student assets is 20% (down from 25% previously), while parent assets are assessed at a maximum of 5.64%. This means that for every $1,000 in your daughter's bank account, about $200 could potentially be added to your expected contribution. As for not reporting it last year, I wouldn't panic. Many families overlook this, and verification usually focuses on larger discrepancies. Moving forward, just report accurately. And no, I wouldn't recommend moving the money around right before filing - that can look like intentional asset shielding and could trigger verification flags.

Hahaha DONT MOVE THE MONEY they can see that during verification and it looks Shady AF. My daughter got flagged for verification cause we tried to "rearrange" things before filling. They asked for 3 months of bank statements!!! Better to just report it honestly even if takes a bit off aid amount.

Yes, student assets are still counted on the FAFSA, though their impact has changed with the FAFSA Simplification Act. Here's what you need to know: 1. Student assets are assessed at 20% (meaning 20% of the value is considered available for education expenses) 2. Parent assets are assessed at 5.64% maximum (sliding scale, actually less for many families) 3. Student income has a protection allowance of approximately $7,600 (for 2025-2026) 4. Some families qualify for the Student Aid Index (SAI) simplified formula where assets aren't counted at all For your specific situation with $3,500 in savings, that could theoretically increase your SAI by about $700 (20% of $3,500). However, if your income is below certain thresholds, you might qualify for the simplified formula where assets aren't counted. Regarding your concern about last year's application - don't panic. The Department of Education selects applications for verification based on various factors, and they don't verify every application. If selected for verification, you would simply need to explain and correct the information.

When my son was applying, we put his savings in a CD in my name 6 months before filing. Problem solved! Nobody said anything about it during verification.

I've been trying to reach FSA for 3 days about this exact question! Their hold times are ridiculous - I was on hold for 2+ hours yesterday before getting disconnected. Finally found a service called Claimyr (claimyr.com) that got me through to a real person at FSA in about 20 minutes. They have a video demo showing how it works: https://youtu.be/TbC8dZQWYNQ The agent confirmed that student assets are counted at 20% under the new formula, but that certain families with income below $60k may qualify for an automatic zero EFC where assets don't matter. Worth calling to check your specific situation!

wait i just realized something - isnt there a minimum asset threshold? like they dont count student assets under a certain amount? i seem to remember reading that somewhere

This whole system is RIGGED against students who work hard and save. My daughter worked all through high school, saved $8,000, and then got PUNISHED for being responsible by having her aid reduced. Meanwhile, kids who blow all their money get rewarded. How does this make ANY sense???? The government wants to teach kids to be IRRESPONSIBLE with money. It's absolutely BACKWARD.

sorry but all u parents telling kids to hide money or move it around are teaching terrible lessons!! just be honest on the dang form

I completely understand your panic - I went through the same thing last year! The good news is that while student assets are counted at 20%, the impact on your daughter's aid might be less dramatic than you think. For her $3,500 in savings, you're looking at roughly $700 added to your SAI (Student Aid Index), which doesn't translate to a dollar-for-dollar reduction in aid. As for not reporting the $1,200 last year, try not to stress too much. The Department of Education doesn't automatically cross-reference every detail from year to year unless there are major red flags. Just report everything accurately going forward. One thing to consider: if your daughter needs any educational supplies or equipment for the upcoming school year (laptop, textbooks, etc.), using some of her savings for these legitimate expenses before filing could reduce the reportable amount while still supporting her education. Just don't make any sudden large transfers - timing and documentation matter if you're selected for verification.