Financial Aid- do Savings Bonds count?

[3DisneyBuggs]

My kids have some Savings Bonds and reading the vent about aid has me thinking. If the bonds remain uncashed do we have to report them on the FAFSA?

 

[PatsMom]

Savings bonds have to be reported. They count as an asset of the bond owner so if they are in your kid's names, they are the child's asset and count as available to pay for education at the child's rate. Also, bonds owned by the child are not eligible for the interest exclusion available for tuition payment.

 

[cepmom]

I called the Financial Aid office at DD's school last year and asked this same question. I was told if they were not cashed in, then they do not need to be reported.

 

[3boymthr]

I know mine weren't reported when I went to school, because I didn't even know I had them - my Grandmother bought one or two a year for me and all my cousins starting when we were born until she passed away. I didn't receive them until she passed away a couple of years ago - I had no idea they existed, but if the Financial Aid department had done a search by my SSN they would have found them and since they were equal to a year's tuition this certainly was not done.

Plus, some bonds have penalties if they are cashed before a certain number of months/years have passed (i.e., I Bonds). I'm reasonably sure they wouldn't count this kind, how fair would it be to count money where you're not going to have that much if you cash them in.

 

[PatsMom]

I called the Financial Aid office at DD's school last year and asked this same question. I was told if they were not cashed in, then they do not need to be reported.

The school may not have required them but they are specifically asked for on the FAFSA. I've updated values for several clients over the years specifically for them to report on the FAFSA. And I just updated the value of DD's bonds since we are doing her FAFSA in the next few weeks.

 

[cepmom]

The school may not have required them but they are specifically asked for on the FAFSA. I've updated values for several clients over the years specifically for them to report on the FAFSA. And I just updated the value of DD's bonds since we are doing her FAFSA in the next few weeks.

when I called I asked specifically if they needed to be reported on the FAFSA. She told me if they have not been cashed in they did not need to be reported. DD's savings bonds are not even face value yet....I have to report them because they are supposed to be able to be used to pay for college even though I will not receive full value (or even face value)for them at this point? I'm confused by what you mean when you say you updated the value.

 

[Grumpy's Gal]

FAFSA requires you to report them. unfortunately.