When applying for a Stafford Loan deferment are ones investments evaluated?
Answer John, I’m assuming that you filled out a FAFSA form and the school is offering the Stafford loan as a form of financial assistance. Income and assets (investments) are only assessed when you fill out the FAFSA. The Dept. of Education uses your information when it is calculating your EFC (Expected Family Contribution). This number is what the gov. says you can afford, on a yearly basis, for college expenses. Assets can be qualified or non-qualified. Qualified assets do not count against you and include retirement plans through work, IRA’s, etc. Non-qualified assets are what count against you and are more likely in the form of cash (checking, savings, and money market accounts), stocks, bonds, mutual funds, etc. A family has a protection allowance based on the age of the oldest parent and the number of people living in the household. Assets over their protection allowance are assessed at 5.6% and go toward the EFC. That is the only time when assets should come into play. Hope this
