If you’re like most students, you’re probably wondering if you should empty your bank account for FAFSA. The answer is: it depends.
Factors to Consider
Several factors can affect your decision, including:
- Your income
- Your assets
- Your family’s income
- Your family’s assets
- Your expected college costs
Your income
Your income is the amount of money you earn from work, investments, and other sources. The more income you have, the less financial aid you’ll be eligible for.
Your assets
Your assets are things you own, such as cash, savings accounts, stocks, bonds, and real estate. The more assets you have, the less financial aid you’ll be eligible for.
Your family’s income
Your family’s income is the amount of money your parents or guardians make from work, investments, and other sources. The more income your parents make, the less financial aid you’ll be eligible for.
Your family’s assets
Your family’s assets are things that your parents or guardians own, such as cash, savings accounts, stocks, bonds, and real estate. The more assets your parents have, the less financial aid you’ll be eligible for.
Your expected college costs
Your expected college costs are the total amount of money you expect to pay for college, including tuition, fees, room and board, and other expenses. The higher your expected college costs, the more financial aid you’ll be eligible for.
How FAFSA Works
The Free Application for Federal Student Aid (FAFSA) is a form that you use to apply for federal student aid. The FAFSA collects information about your income, assets, family’s income, and family’s assets. This information is used to calculate your Expected Family Contribution (EFC).
Your EFC is the amount of money that your family is expected to contribute to your college costs. The lower your EFC, the more financial aid you’ll be eligible for.
Should I Empty My Bank Account for FAFSA?
The decision of whether or not to empty your bank account for FAFSA is a personal one. There is no right or wrong answer. However, the following tips may help you make the best decision for your situation:
- If you have a lot of income and assets, you may want to consider emptying your bank account for FAFSA. This will lower your EFC and make you eligible for more financial aid.
- If you have a low income and few assets, you may not need to empty your bank account for FAFSA. Your EFC will already be low, and you’ll be eligible for the maximum amount of financial aid.
- If you’re not sure how much income and assets you have, you can use the FAFSA4caster to estimate your EFC. This will give you a good idea of how much financial aid you’ll be eligible for.
Other Ways to Save Money for College
If you don’t want to empty your bank account for FAFSA, there are other ways to save money for college. These include:
- Getting a part-time job.
- Saving your allowance or other income.
- Investing in a 529 plan.
- Taking advantage of scholarships and grants.
Conclusion
The decision of whether or not to empty your bank account for FAFSA is a personal one. However, the tips in this article can help you make the best decision for your situation.
