Will my son's $10K savings account affect his Pell Grant eligibility for FAFSA 2025-2026?

Student assets definitely count in the FAFSA calculation, but differently than parent assets. Student assets are assessed at 20% while parent assets are assessed at a maximum of 5.64%. So yes, his $10K would potentially increase his SAI by about $2,000, which could reduce his Pell Grant eligibility somewhat. However, if your family income is low enough to qualify for full Pell, the impact might be minimal. The 2025-2026 FAFSA has some protections for low-income families.

have him buy a car!!! thats what my daughter did. cars dont count as assets on fasfa forms!

omg i panicked about this same thing last year!! my kid had like 8k from her grandparents and a summer job. we still got plenty of aid tho, our income is pretty low so it barely made a difference. dont stress too much

The FAFSA requires reporting ALL assets as of the date you submit the application. Student assets are assessed more heavily than parent assets in the SAI formula (20% vs. up to 5.64%). Strategies to consider (legally): 1. Use the savings for legitimate educational expenses before filing (computer, books, etc.) 2. If your son is planning to buy necessary school supplies anyway, doing so before filing makes sense 3. Pay off any high-interest debt if applicable Keep in mind that with very low family income, you may still qualify for significant Pell even with the savings factored in. The SAI calculation has multiple components, with income being weighted most heavily.

I work in financial aid at a community college and see this issue all the time. With the 2025-2026 FAFSA, student assets are still assessed at 20%, but there's good news - if your family income is below a certain threshold (which it sounds like you are), your son might qualify for an automatic zero SAI or simplified formula which could reduce the impact of his savings. My advice? Call Federal Student Aid directly to discuss your specific situation. Unfortunately getting through to FSA can be a real headache - long wait times and frequent disconnections. I recently discovered a service called Claimyr that helps people get through to FSA agents without the wait. You might check out their website at claimyr.com or their video demo: https://youtu.be/TbC8dZQWYNQ. Several of our students used it for FAFSA verification issues and actually got through to someone.

I was in a similar situation with my daughter last year. What we did was use a portion of her savings to pay for her first-semester textbooks and a laptop before we filed the FAFSA. These were expenses we were going to have anyway, and it reduced her reportable assets a bit. Another thing to consider - if your son has any qualified education expenses coming up, having him pay a portion of the tuition/fees directly from his account before filing might help too. Since that money would be gone before you submit the FAFSA.

Remember NOT to move the money to your account to hide it! That's considered fraud and they can ask for bank statements if your FAFSA gets selected for verification. My niece got caught doing this and had to repay all her aid!!!

my son spent all his savings on a gaming computer lol problem solved 😂

Quick update since there's some confusion in this thread: The 2025-2026 FAFSA uses the Student Aid Index (SAI) instead of the older EFC calculation. For families with incomes below $49,000 (with certain tax filing statuses), there's often an automatic zero SAI calculation that would ignore the student assets entirely. I'd recommend scheduling a meeting with a financial aid counselor at your son's school to discuss your specific situation. They can run a preliminary calculation and give you more precise advice for your circumstances.

As a parent who went through this exact situation two years ago, I want to reassure you that it's not as catastrophic as it might seem! My daughter had about $8,500 in savings when we filed her sophomore year FAFSA, and while it did reduce her Pell Grant slightly, she still received substantial aid. The key thing to remember is that the FAFSA looks at your overall financial picture, not just one component. Since you qualified for full Pell this year with low income, that income level will still be the dominant factor in your SAI calculation next year. That said, if your son has legitimate educational expenses coming up (laptop, textbooks, dorm supplies, etc.), it makes financial sense to purchase those before filing the FAFSA. Just make sure they're things he actually needs - don't make frivolous purchases just to reduce assets. Also, definitely look into that automatic zero SAI that Ellie mentioned. With your income level, you might qualify and that would make his savings irrelevant to the calculation entirely.

I just wanted to add another perspective here as someone who works with families on FAFSA planning. While everyone's focused on the 20% assessment rate for student assets (which is accurate), don't forget that there's also a student asset protection allowance built into the formula. For the 2025-2026 award year, students typically have some protection for their first few thousand dollars in assets before the 20% kicks in. Also, timing matters! The FAFSA uses a "snapshot" of your assets as of the day you file, not your average balance throughout the year. So if your son needs to make any legitimate educational purchases, doing so right before filing can be strategic. One more thing - if he's planning to work during college and continue saving, consider having him open a 529 education savings account owned by you (the parent) rather than keeping future savings in his name. Parent-owned 529s are assessed at the lower parent rate, not the student rate.

I'm a college sophomore who was in almost the exact same situation last year! I had saved about $9,500 from working in high school and was terrified it would kill my financial aid. Here's what actually happened: My family income was around $35,000, so we qualified for the simplified needs test (now called automatic zero SAI). This meant my savings didn't count AT ALL in the calculation - I still got my full Pell Grant plus state aid. Before you panic, definitely check if your family qualifies for the automatic zero SAI. With your low income, there's a really good chance you do. The income thresholds are pretty generous for families in our situation. Even if you don't qualify for automatic zero, remember that your son's hard work and savings show responsibility - don't let him feel bad about it! The system isn't perfect, but there are legitimate ways to handle this. I ended up using some of my savings for a laptop and textbooks I needed anyway, which helped reduce the reportable amount. The financial aid office at his school will be your best resource. They deal with this situation constantly and can give you specific advice based on your exact income and circumstances.

I'm a financial aid advisor and want to add some clarity to this discussion. The good news is that with your family's low income, there's a strong possibility you'll qualify for the automatic zero SAI, which would completely eliminate the impact of your son's savings. For 2025-2026, families with adjusted gross income under $49,000 who meet certain criteria (like filing a 1040 or being eligible for federal means-tested benefits) automatically get a zero SAI regardless of assets. This sounds like it could apply to your situation. If you don't qualify for automatic zero, yes, student assets are assessed at 20%, but remember there's also a student asset protection allowance. The first portion of student assets (usually around $7,000-$10,000 depending on the year) is protected before the 20% assessment kicks in. My recommendation: Contact your son's financial aid office ASAP to discuss your specific situation. They can run preliminary calculations and tell you definitively whether you'd qualify for automatic zero. Don't make any major financial decisions until you have that information - you might be worrying about nothing!

As someone who just went through the FAFSA renewal process with similar concerns, I wanted to share what I learned that might help ease your worries! My daughter had about $12K in savings from working multiple jobs throughout high school, and I was absolutely panicking about how it would affect her aid. After speaking with three different financial aid counselors, here's what I discovered: 1. The automatic zero SAI is a game-changer for low-income families. Based on what you've shared about qualifying for full Pell this year, you very likely qualify for this, which would make his savings completely irrelevant to the calculation. 2. Even if you don't qualify for automatic zero, the student asset protection allowance means the first chunk of his savings won't be assessed at all. 3. The timing of legitimate educational expenses really matters. We had my daughter purchase her laptop, textbooks for spring semester, and some dorm essentials right before filing, which reduced her reportable assets by about $3,000. The most important advice I can give you is to call the financial aid office before doing anything. They can tell you within minutes whether your family income and tax situation qualify for automatic zero SAI. Don't stress yourself out over scenarios that might not even apply to you! Your son should be proud of his savings - it shows incredible work ethic and financial responsibility. The system has protections in place specifically for families like yours, so try not to panic just yet.

I'm new to this community but wanted to share my perspective as someone who just completed the FAFSA process for the first time. Reading through all these responses has been so educational! What strikes me most is how much misinformation circulates about FAFSA - I initially thought ANY savings would automatically disqualify students from aid, but clearly that's not true. The automatic zero SAI provision seems like it could be exactly what you need, and it's encouraging to see so many people share positive outcomes even when their students had significant savings. One thing I'm curious about - for families who don't qualify for automatic zero SAI, is there a general rule of thumb for how much student savings typically reduces Pell Grant eligibility? I know it depends on many factors, but it would be helpful to understand the typical impact range. Thanks to everyone who's shared their experiences here - this thread has been incredibly informative for those of us navigating this process!

As a newcomer to this community, I've been reading through all these responses with great interest since I'm facing a very similar situation with my daughter who will be applying for FAFSA next year. She's saved about $8,000 from her part-time job, and I've been losing sleep over how it might affect her aid eligibility. What I'm finding so valuable about this discussion is how it's moved from initial panic to practical solutions. The automatic zero SAI provision seems like it could be a lifeline for many low-income families, and I had never heard of it before reading this thread. I'm also really appreciating how many people have emphasized the importance of contacting the financial aid office directly rather than making assumptions or panicking based on incomplete information. It seems like the FAFSA system, while complex, does have protections in place for families like ours who are truly in need. One question I have for the group - for those who used savings for legitimate educational expenses before filing, did you keep receipts or documentation? I'm wondering if there's any chance of being asked to verify how the money was spent during the verification process. Thank you all for creating such an informative and supportive discussion. It's clear this community really looks out for each other!

As a newcomer to this community, I want to thank everyone for such a thorough and supportive discussion! I'm actually in a very similar boat - my daughter is a high school senior who's saved about $9,500 from working at a local restaurant since junior year, and I've been stressed about how this might impact her FAFSA for next year. Reading through all these responses has been incredibly reassuring. The automatic zero SAI possibility gives me so much hope since our family income is definitely in that range. I had no idea this protection existed! It's also comforting to see so many real examples of families who navigated this successfully. What really stands out to me is how this community emphasizes getting accurate information from official sources rather than just speculating. I'm definitely going to follow everyone's advice and contact our school's financial aid office directly to check on our automatic zero SAI eligibility before making any decisions. For those who mentioned using savings for legitimate educational expenses before filing - this seems like such practical advice. My daughter definitely needs a laptop for college, and we were planning to buy textbooks anyway, so the timing strategy makes perfect sense. Thank you all for turning what felt like a crisis into a manageable situation with clear next steps. This community is amazing!

As someone new to this community, I've been following this incredibly helpful discussion with great interest! My nephew is in a very similar situation - he's saved about $11,000 from working at a grocery store throughout high school, and our family has been worried about how this might impact his financial aid eligibility. What's been so valuable about reading everyone's experiences is learning about the automatic zero SAI provision. I had absolutely no idea this existed, and it sounds like it could be a game-changer for low-income families like ours. The fact that so many people here have shared positive outcomes even with significant student savings is really encouraging. I'm also really impressed by how this community emphasizes getting official information rather than relying on assumptions or rumors. The consistent advice to contact the financial aid office directly before making any major decisions seems so much smarter than panicking and potentially making unnecessary moves. For families who do need to consider the strategic timing of legitimate educational purchases, the examples shared here (laptops, textbooks, etc.) make perfect sense - these are expenses that would happen anyway, so timing them strategically is just good planning rather than trying to manipulate the system. Thank you all for creating such an informative and supportive environment. This discussion has turned what felt like an overwhelming problem into a manageable situation with clear next steps!

As a newcomer to this community, I wanted to add my voice to this incredibly informative discussion! My son is in almost the exact same situation - he's saved about $9,200 from his part-time job at a local pizza place, and I've been absolutely terrified about how this might affect his Pell Grant eligibility for next year. Reading through everyone's experiences and advice has been such a relief! The automatic zero SAI provision is something I had never heard of before, but it sounds like it could be exactly what families like ours need. Our income is definitely in that lower range, so I'm cautiously optimistic that we might qualify. What I really appreciate about this thread is how everyone has moved from initial panic (which is exactly where I started) to practical, actionable solutions. The consistent advice to contact the financial aid office directly before making any major decisions just makes so much sense - why stress over hypothetical scenarios when you can get definitive answers about your specific situation? I'm also grateful for all the examples of legitimate educational expenses that can be strategically timed. My son definitely needs a laptop and will need textbooks, so it's good to know that timing these purchases thoughtfully is just smart planning rather than trying to manipulate the system. Thank you all for creating such a supportive and knowledgeable community. This discussion has transformed what felt like a crisis into a manageable situation with clear next steps. I'll be calling the financial aid office first thing Monday morning!

As a newcomer to this community, I've been reading through this entire discussion with fascination and relief! My daughter is facing the exact same situation - she's managed to save $8,700 from her job at a local bookstore, and I've been losing sleep wondering if this hard-earned money would hurt her chances for financial aid next year. This thread has been absolutely invaluable in helping me understand that there are actually protections in place for families like ours. The automatic zero SAI provision is something I had never heard of before, but given our low family income, it sounds like we might qualify - which would make her savings completely irrelevant to the calculation! What I find most reassuring is how many people have shared real, positive outcomes even when their students had significant savings. It's clear that the FAFSA system, while complex, does consider the whole financial picture rather than just punishing students for being responsible savers. I'm definitely taking everyone's advice and calling our school's financial aid office before making any decisions. No point in panicking over hypothetical scenarios when I can get concrete answers about our specific situation. My daughter needs a laptop anyway, so if strategic timing makes sense after talking to the financial aid counselor, we'll consider that approach. Thank you all for creating such a supportive, informative discussion. You've transformed what felt like a financial aid crisis into a manageable situation with clear next steps!

As a newcomer to this community, I'm incredibly grateful to have found this discussion! My daughter is in almost exactly the same situation - she's saved about $10,500 from working at a local retail store throughout high school, and I've been absolutely panicking about how this might impact her financial aid eligibility. Reading through everyone's experiences has been such an eye-opener. I had no idea about the automatic zero SAI provision before finding this thread - it sounds like it could be a complete game-changer for low-income families like ours. Our family income definitely falls in that lower range where we might qualify, which gives me so much hope! What I appreciate most about this discussion is how it's moved from initial fear to practical, actionable advice. The consistent recommendation to contact the financial aid office directly before making any major decisions really resonates with me - why stress over hypothetical scenarios when you can get definitive answers about your specific situation? I'm also reassured by all the real examples people have shared of students with significant savings who still received substantial aid. It's clear that the system looks at the whole financial picture, not just one component. My daughter definitely needs a laptop for college and we'll need to buy textbooks anyway, so if the financial aid counselor confirms that strategic timing makes sense for our situation, we'll consider that approach. But first, I'm calling the financial aid office Monday morning to check on our automatic zero SAI eligibility. Thank you all for creating such a supportive, knowledgeable community. You've transformed what felt like a crisis into a manageable situation with clear next steps!