Savings bonds and FAFSA

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Discus: Financial Aid and Scholarships: May 2004 - Archive: Savings bonds and FAFSA
By Monarchsfan16 (Monarchsfan16) on Tuesday, August 10, 2004 - 01:58 pm: Edit

I've received savings bonds as gifts from family for years. Now we're getting ready to fill out the FAFSA and none of us know whether we're supposed to put savings bonds somewhere on the form or if they go undeclared. Does anyone know?

By Anxious_Mom (Anxious_Mom) on Tuesday, August 10, 2004 - 03:53 pm: Edit

No asset gets to be "undeclared". If the bond is made out to the student, it goes under the student's asset section on the FAFSA, if the bond is made out to someone else, with the student as "beneficiary in case of death", then it actually "belongs" to someone else. If the parent's name is on it, then it goes under the parent's assets and only approx 6.5% gets used for the EFC. This is another example of when it is better NOT to have assets in the name of the student.

By Ecnerwalc (Ecnerwalc) on Tuesday, August 10, 2004 - 05:35 pm: Edit

I got a bond for winning an essay contest. Do you have to do something to activate the bond so it counts down the years until maturity? or is it self activated? How do you cash it in after it has matured?

By Sybbie719 (Sybbie719) on Tuesday, August 10, 2004 - 06:50 pm: Edit

CHeck with your bank as some banks still sell and cash savings bonds.

Savings bonds can be cashed at the federal reserve bank.

By Monarchsfan16 (Monarchsfan16) on Tuesday, August 10, 2004 - 09:01 pm: Edit

What happens if the bonds haven't reached maturity yet?

By Kevin10930 (Kevin10930) on Wednesday, August 11, 2004 - 11:11 am: Edit

I believe you have to report the "cash value" (ie..if it were cashed today what cash could you use for college expenses.) This web site will help you to determine the value of your bonds.

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