Students seeking need-based financial aid must be careful of how much money is in their savings and checking accounts.

THIS IS VERY, VERY IMPORTANT! Colleges and universities expect you (the student) to use virtually your entire savings to help pay for college. You should take action to reduce money held in your name; if you need to buy things (such as a laptop computer for next year), do it before you complete the FAFSA, CSS/PROFILE, and other financial aid documents. Do whatever you can to reduce the amount of money in your name and report the reduced amount on the FAFSA and CSS/PROFILE financial aid applications.

Reducing the amount of money in your accounts will increase your eligibility to receive need-based scholarships and grants. If you don’t, colleges will count the money held in your name against you and WILL REDUCE THE AMOUNT OF NEED-BASED SCHOLARSHIP AND GRANT MONEY YOU ARE ELIGIBLE TO RECEIVE.

NOTE: The “standard” college financial aid formula requires students to use 30-35% of their financial assets to pay for college each year before receiving government aid. In contrast, the same financial aid formula requires parents to use 5.6% of their financial assets. For non-family members, such as grandparents, aunts, and uncles, the number is zero (non-family members are NOT expected to pay ANY college expenses).