FAFSA joint bank accounts - whose asset is it when parent cosigned for minor?

The general rule is that joint accounts between a parent and dependent student are reported based on who actually owns/contributes to the money. Since the funds came from your son's employment, they would be reported as a student asset on the FAFSA. Student assets are assessed at a higher rate (20%) compared to parent assets (around 5.64% max), so this will impact your SAI calculation more significantly. Something to consider: if these accounts were not joint and solely in your name, they would count as parent assets instead, potentially lowering your SAI. The 2025-2026 FAFSA will ask specifically about bank account balances as of the date you submit the application, not a historical average.

Actually, this gets complicated! When the FAFSA asks about "student assets," they're referring to assets OWNED by the student, not just "in the student's name." Since you created these accounts when he was a minor and you're the co-owner, the ownership question is murky. I've worked with families where joint accounts were reported as parent assets because the parent maintained legal control, especially if the accounts were established when the student was a minor. The FAFSA doesn't have specific instructions for joint accounts - they just want to know who OWNS the money.

UGHHH why is FAFSA so unnecessarily complicated!! The whole system is designed to confuse people. I spent HOURS trying to figure out this exact same issue last year. Called FSA three times and got three different answers about how to handle a joint account. Finally got through to someone who actually knew what they were talking about and they said that for joint accounts between parent/student, you need to report 50% as student assets and 50% as parent assets UNLESS you can document a different ownership split. So in your case, since it's clearly your son's money from his jobs (if you have pay stubs or deposit records to prove it), you could report 100% as student assets. But honestly, that HURTS your aid eligibility since student assets are assessed at a higher rate.

Financial aid counselor here. For the 2025-2026 FAFSA, joint accounts between parents and dependent students should be reported based on actual ownership, not just whose names are on the account. If the money came from your son's employment, it should be reported as a student asset, even with your name on the account. Student assets are assessed at 20% in the SAI formula, so approximately $2,200 of the $11,000 will factor into your aid calculation. Parent assets are assessed on a sliding scale maxing out at 5.64%. If you're concerned about the impact on aid eligibility, you have a few options: 1. Use some of the funds for qualified educational expenses before filing FAFSA 2. Consider moving some money to a 529 plan (though timing matters here) 3. Pay down any consumer debt you may have However, do NOT move money around solely to manipulate FAFSA results, as this could be considered misrepresentation.

has anyone tried calling the FAFSA support line to get a clear answer? i spent 2 hrs on hold last week trying to ask about my parents' retirement accounts and never got through

I think what matters is whose money it ACTUALLY is. My tax guy told me to think about it this way: if you got divorced tomorrow, whose money would it be in court? Sounds like it's 100% your son's money that he earned, so it's a student asset regardless of whose name is on the account. btw the student asset assessment is actually 20% not 50% like someone mentioned above. So about $2,200 of that $11k would be "added" to your EFC/SAI calculation. Still makes a difference but not as bad as half.

lol am i the only one who just...estimated...all these numbers on my fafsa? 😂 they don't actually verify your bank accounts unless you get selected for verification right?? asking for a friend...

After reading all the responses, I think you should call Federal Student Aid directly for your specific situation. From my experience working with families on FAFSA, the most important thing to document is WHO CONTRIBUTED THE MONEY. If you have records showing deposits came from your son's paychecks, take screenshots or make copies - this proves ownership. One option to consider: your son could use some of that money now for valid educational expenses before filing the FAFSA. Maybe he needs a laptop for college? Books? Paying for application fees or enrollment deposits? This reduces reportable assets legitimately.

Based on all the advice in this thread, here's what I'd recommend: 1. Document that the funds came from your son's employment (pay stubs, deposit records) 2. Consider legitimate pre-FAFSA educational purchases (as others suggested) 3. Since he's 19, you could remove yourself from the accounts now - this doesn't change ownership but clarifies it 4. When you file the 2025-2026 FAFSA, report these as student assets 5. If your SAI comes back higher than expected, you can always contact the financial aid office at his school for a professional judgment review Most importantly, be truthful on the application. The penalties for misreporting aren't worth the potential aid increase.

Great summary of the action steps! Just want to add one important timing consideration: when you remove yourself from the accounts, make sure to do it well before filing the FAFSA. Some schools' financial aid offices get suspicious if they see recent changes to account ownership right before FAFSA filing dates. Also, keep receipts for any educational expenses you pay for with those funds - not just for potential verification, but also because some of those purchases (like the laptop) might qualify for tax credits on your return. The American Opportunity Tax Credit can give you up to $2,500 back for qualified education expenses. Good luck with the process! Sounds like you have a solid plan now.

This is such a common confusion with FAFSA! I went through the exact same thing with my daughter last year. The key thing to remember is that the FAFSA cares about who actually OWNS the money, not just whose names are on the account. Since your son earned this money from his part-time jobs, it should be reported as a student asset even though you're a co-owner. Yes, this means it will be assessed at the 20% rate (so about $2,200 of the $11,000 will factor into your SAI calculation), but that's the correct way to report it. One tip: if your son needs to buy anything for college (laptop, textbooks, dorm supplies, etc.), consider having him purchase those items before you file the FAFSA. This legitimately reduces his reportable assets while getting necessary college expenses out of the way. Just make sure to keep receipts in case you're selected for verification! The timing of when you remove yourself from the accounts doesn't really matter for FAFSA purposes since the ownership was already established when he earned the money. Good luck with the application process!

For verification, schools typically focus on the major items - bank statements, tax returns, W-2s, etc. They're not trying to "catch" you doing anything wrong, they just need to confirm the numbers you reported match your actual financial situation. The verification process is pretty straightforward if you've been honest on your FAFSA. As for timing of purchases, there's no specific rule about how close to filing you can make legitimate educational expenses. However, @2986b889914b makes a good point about not making it look like you're gaming the system. If you buy a $3,000 laptop literally the day before filing, that might raise eyebrows. But if you're making reasonable purchases over a few weeks or months leading up to filing (laptop, textbooks for spring semester, dorm deposit, etc.), that's completely normal and legitimate. The key is that these need to be actual educational expenses your son would need anyway. Don't buy random stuff just to spend down assets - buy things he actually needs for school! And yes, the 20% assessment rate on student assets does seem harsh compared to the ~5% on parent assets. It's designed to encourage students to contribute more of their resources toward college, but it definitely penalizes kids who work and save responsibly.

Great question about mixed funds, @876094894ea6! For accounts with both earned income and gifts, you'll need to report them based on actual ownership. Money your daughter earned from her job = student asset. Money gifted from grandparents = technically still student asset since gifts to minors become their property. However, if grandparents deposited money directly into a 529 plan or other education savings account they own, that wouldn't be reported as student assets at all. But cash gifts that went into her regular accounts count as hers. For verification, schools typically want bank statements showing the balance on the day you filed FAFSA, plus sometimes 1-2 months of statements to show the balance is consistent. They're not usually looking for a detailed transaction history going back months - just verification that you reported accurate balances. If you're concerned about the assessment impact, consider having grandparents contribute directly to tuition payments instead of giving cash gifts in the future. Direct payments to educational institutions aren't considered gifts for FAFSA purposes and don't count as student assets.

Just wanted to jump in as someone who went through this exact situation last year! My son had a joint account with me that he'd been putting his work earnings into since he was 17. After reading through all the advice here and consulting with our school's financial aid office, we reported it as student assets since the money was clearly his from employment. Yes, it did impact our SAI more than if it had been parent assets, but we felt it was the most honest way to report it. One thing I'd add to all the great advice here - if your son's college has a financial aid office that does pre-filing consultations, definitely take advantage of that! Ours was super helpful in walking through these kinds of ownership questions before we submitted the FAFSA. Much better to get clarity upfront than deal with corrections later. The laptop/college expenses strategy mentioned by others really does work well - we had our son buy his required laptop and textbooks for spring semester before filing, which legitimately reduced his reportable assets. Just make sure whatever you buy is something he actually needs for school!