Financial aid and savings accounts

[Koenigsegg]

So there are lots of people that graduate in mounds high debt..and then there's my friend, who's paying off her interest free school loans as often as she can. Her paycheck is divided into living expenses, and paying off these interest free loans for some reason.

I tell her about ING and that if she's not going to use that money, that is to just pay back the loans..she should put it in an ING account or better yet a CD account since she's not graduating until '07.

She says she's afraid though that financial aid will see this and not give her grants anymore..but I tell her they can't.

Or can they? I didn't even think that credit institutions have access to that kind of stuff..just the amount of loans given out and owed.

 

[akubi]

they can lower grants if they see you have money saved up.

i remember there was some silly formula that incorporates both income and assets when calculating how much you/your parents need to pay outright.

i guess it really depends on the policy; many schools have need based financial aid...

 

[WalkingDead]

open a different bank account with her mom or dad's name but make sure setup it up to allow her to access it.

 

[habib89]

yah, i think they can decrease grant money, but financial aid is not the same as grants..