FAFSA Verification of Bank Accounts - Scholarships360 (2024)

FAQs

Can FAFSA verify bank account? ›

Students selected for verification of their FAFSA form may wonder, “Does FAFSA check your bank accounts?” FAFSA does not directly view the student's or parent's bank accounts.

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The FAFSA will specifically ask “As of today what is the cash balance of checking, savings…” accounts for the student. Because the question is phrased “As of today” it leaves room for interpretation. If all money was pulled from checking and savings the day before the FAFSA was filed, the answer is zero.

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).

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.

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.

If you would like to opt-out of the sale of your personal information you may do so by emailing us at info@scholarships360.org.

After successful notification of a scholarship award and verification, Scholarships360 will provide payment of the award to the scholarship winner's accredited academic institution to be applied towards tuition after receiving proof of enrollment, or by check.

Scholarships360 is a free scholarship search site. Students who register will receive help creating a personalized plan to find and fund a high ROI educational opportunity.

Add the account balances of your (and if married, your spouse's) cash, savings, and checking accounts as of the day you submit the FAFSA form. Enter the total of all accounts as the total current balance.

Will money in a bank account affect my eligibility for FAFSA? ›

Assets considered for the FAFSA include: Money, which includes current balances of any cash, savings, and checking accounts. Non-retirement investments, like brokerage accounts, real estate (other than your primary residence), CDs, and stock options.

The financial aid office does not know what you spend the money on. But you do sign a "statement of educational purpose" when you file the Free Application for Federal Student Aid (FAFSA). So, you have agreed to spend it on expenses related to your enrollment in college.

A: The best way to avoid being selected for verification is to complete your FAFSA using the IRS Data retrieval tool, if possible. IRS data retrieval isn't an option for every applicant, but this one step will significantly reduce the likelihood of your application being selected.

Some people are selected for verification at random; and some schools verify all students' FAFSA forms. All you need to do is provide the documentation your school asks for—and be sure to do so by the school's deadline, or you won't be able to get federal student aid.

About 17% of FAFSA forms were selected for verification during the first three quarters of the 2021-2022 cycle.

Within 1-3 business days after submitting the required identity verification form and documents, The Office of Federal Student Aid will send an email confirming that your identity has been verified.

Does the USA colleges or universities check the bank statement or verify it with the bank name in the home country of the applicant before issuing the I-20 form? Leonid R. No. We just check a bank statement and student's financial declaration and see if these two documents match.