FAFSA Verification of Bank Accounts - Scholarships360 (2024)

FAQs

FAFSA Verification of Bank Accounts - Scholarships360? ›

Verification doesn't necessarily check the student's or parent's bank accounts. Rather, the school will ask for documentation to clarify information provided in the form. These documents can include income tax returns, W-2 forms, and 1099 forms.

FAFSA doesn't check anything, because it's a form. However, the form does require you to complete some information about your assets, including checking and savings accounts. Whether or not you have a lot of assets can reflect on your ability to pay for college without financial aid.

A record of your family's finances, or assets, is necessary to determine how much financial aid you will receive. The value of your assets is used to determine your EFC or Expected Family Contribution. The FAFSA uses a formula to determine your financial need to attend college.

Trustworthy sources for scholarship and financial aid information include your school's financial aid office, government websites like FAFSA and reputable scholarship databases such as Scholarships360!

During verification, the college financial aid administrator will ask the applicant to supply copies of documentation, such as income tax returns, W-2 statements and 1099 forms, to verify the data that was submitted on the Free Application for Federal Student Aid (FAFSA).

Empty Your Accounts

If you have college cash stashed in a checking or savings account in your name, get it out—immediately. For every dollar stored in an account held in a student's name (excluding 529 accounts), the government will subtract 50 cents from your financial aid package.

Bank statements and records of investments (if applicable), net worth of investments, businesses, and farms. Records of untaxed income (if applicable) An FSA ID (account username and password) to log in to StudentAid.gov and start the FAFSA form electronically.

If all money was pulled from checking and savings the day before the FAFSA was filed, the answer is zero. A nominal value of $200 or $300 may be listed, but there is no reason to include any more cash assets. Cash assets sink financial aid eligibility, but are virtually untraceable unless admitted to on the FAFSA.

Records of Your Assets

The FAFSA form will ask you and your contributors questions about your assets, so make sure you have records of your savings and checking account balances, as well as the value of any investments, such as stocks, bonds, and real estate (excluding your primary residence).

Do Parents' Assets Affect Financial Aid? Both parent and student-owned assets can have an impact on financial aid eligibility. However, generally-speaking, parent assets have a more limited impact because parents are expected to contribute a smaller proportion of their wealth to pay for their child's college education.

How does scholarship 360 work? ›

Scholarships360 is a platform connecting students to scholarships and financial aid resources. Scholarships360 provides students, parents, and educators with personalized, unbiased advice so they can make smart financial moves when it comes time to pay for college.

In a common variation the sponsor sends the student a check for the scholarship but requires the recipient to send back a check for the taxes or some other fees. Or the sponsor sends a check for more than the scholarship amount and asks the recipient to send back a check for the difference.

Many scholarships are available online, but not all are legitimate, experts warn. Students should look out for red flags in a scholarship application, including requests for payment, personal information such as a Social Security number, or guaranteed money.

You can be selected for verification for a variety of reasons. Some filers are chosen at random, some schools choose to verify every FAFSA applicant and some FAFSA forms are targeted for inaccurate or inconsistent information.

The student won't receive Title IV aid for reasons other than a failure to complete verification. This includes being ineligible for that aid and withdrawing without receiving it. The applicant is eligible to receive only unsubsidized student financial assistance.

If all money was pulled from checking and savings the day before the FAFSA was filed, the answer is zero. A nominal value of $200 or $300 may be listed, but there is no reason to include any more cash assets. Cash assets sink financial aid eligibility, but are virtually untraceable unless admitted to on the FAFSA.