Financial Aid and receiving settlement money

[artist59]

Does anyone know how colleges figure any money that a student will be receiving (settlement from a lawsuit) into their financial aid calculations.

If a student will receive money at 18, I assume that will reduce the aid they are eligible for but how is it calculated if they will only receive the money when they are 25?

Is there a website that discusses this and also how financial aid is calculated in general?

Thanks.

 

[roadkill]

The FAFSA form asks for the amount in the student bank account as well as earnings information as reported on their tax return. The information reported is as of the date the report was signed. Therefore, I believe that your student would not report this settlement until the cash is actually received. Then it may only need to be reported if the cash remains in the student name (ie: in their bank account as of the date a subsequent FAFSA is signed) or if it is required to be reported as taxable income.

 

[Getting short]

finaid.com is good. Also, depending on the school, Profile may look at the settlement money differently than FAFSA.