Should I drain my bank account before college?I'm a junior in high school and have a minimum wage direct deposit job with about 15 to 20 hours a week. By the time I graduate I should have about 20 grand in the bank going on the 7 i have already. would it be wise to gradually take money out so when it comes time for college, it looks like I have nothing so... |
when you apply for finanical aid, the question asks specifically, "how much do you have in cash, savings and checking?"
So simply "taking it out" of the bank does NOT mean you don't have to report it. You can bury it in the backyard or stash it under your mattress and you STILL have to report it because it's cash.
Manipulating the system is illegal and your tax forms are going to reflect that. You think its going to make a big difference, but it won't. You won't get grants no matter what anyway, at least now you know you will have the money to pay for your college without taking loans out.
Don't make a freshman mistake and decide you can "afford" a school costing 20K a year (because you have saved 20K).. Lots of inexperienced freshman and their families do this. Be aware you will be in college for FOUR years, meaning , if you have saved 20K, you can afford a college costing 5K a year.. 5K times 4 years is 20K.
I hope you also realize that no matter what you do with this money
FAFSA is going to take your financial picture as well as your parent's financial picture into account until you are 25
Financial isn't always grants... it is Student Loans (ones that have to be paid back)... your family's financial situation might mean that you don't get any grants & only loans..
so.... I don't see how doing anything with that money other than saving it for college will help you
and, I can see how not saving it could work against you
If you're audited, you can be charged for providing false information.
The reason that they take your current funds into account is because they want to be able to give you whatever financial assistance you actually NEED. If you have $20K in the bank, they're going to want you to use that, rather than to wind up with that $20K in loans that will be accumulating interest over time, that you'll have to pay back later.
It's frustrating if you want that money for yourself, but you have to keep in mind that the system is there so that any students who can avoid it will not go into crushing debt.
What are you saving the money for that you can't earn again once you've graduated?
