What does interest income mean on fafsa

The dollar value of bond interest reflects the dollar value of bonds held by the individual. In terms of financial aid, whenever greater assets, such as bonds, are reported, less financial aid will be offered since the student has a means to pay for the expenses.

Security deposits on home and apartment rentals are held in bank accounts that collect interest. This interest income is held in the bank account until the tenant moves out, at which time the landlord either uses the security deposit for repairs or refunds the original security deposit plus interest earned to the tenant. Interest income earned on security deposits is reported on the FAFSA even though the individual does not have control over the bank account.

Other Calculators. Online Degrees. Online Colleges. Paying For Online Education. Paper Version. Child support paid because of divorce or separation or as a result of a legal requirement. Taxable earnings from need-based employment programs, such as Federal Work-Study and need-based employment portions of fellowships and assistantships. Taxable college grant and scholarship aid reported to the IRS as income. Includes AmeriCorps benefits awards, living allowances and interest accrual payments , as well as grant and scholarship portions of fellowships and assistantships.

Combat pay or special combat pay. Student and parent income is a big factor when colleges hand out financial aid. But only some income counts. You'll thank yourself later if you take a few minutes to check it out now.

Most colleges rely on the FAFSA's aid formula to allocate portions of student and parent income to college expenses. Here are the main sources of income this formula counts—and doesn't count. Colleges using the Free Application for Federal Student Aid FAFSA allocate 50 percent of eligible student income to cover the upcoming year of college expenses, and between 22 — 47 percent of eligible parent income.

If parents are divorced, the FAFSA asks for financial information about the parent and stepparent with whom the student lived most of the time. Some income earned by parents and their dependent student is protected not counted to allow for minimal living expenses and payment of taxes.

The income protection allowance changes each year.