Should I start a Go Fund Me page or will that decrease my financial aid?Answered
Hello! I saw a post where a person paid off all their student debt by starting a go fund me page. I did some research and it sounds great and all however I plan to apply to FAFSA and the schools personal financial aid.
If I start a go fund me page, will I have to put that in the FAFSA? And will that lower the amount I can receive? If so, is there a way I can go around that or it's just something I have to risk?
I'm first-generation, have no personal savings/ no assets or job as of right now, so I have no clue how this works.
Please help and thank you!
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2 answers
FAFSA will ask you to report any money you receive from Go Fund Me (which is classified as a gift) in the assets section. Reporting your gift assets will reduce your financial aid award if they are worth more than several thousand dollars. The way you can get around this is by starting your Go Fund Me during your last semester of senior year - that way, you will receive your gift assets before graduating, but after the last time when colleges will look at your finances. Hope this helps!
Hello, @Cynthiam. It's a great question. If you're wondering if you can use GoFundMe to help pay off your student loan, the answer is yes. GoFundMe can typically be used for anything except "corruption, bribery, tax evasion, fraud, and activities of a similar nature." - GoFundMe Terms of Service. You should thoroughly read that before creating a page. Because GoFundMe income can be classified as personal gifts and donations, it is not considered taxable income by the IRS. You still must report to the IRS for such gifts. For your question regarding FAFSA, according to studentaid.gov, "records of untaxed income (if applicable)" must be filled out in your FAFSA form.
You should seek the assistance of your school counselor when filling out the form since many people also have no experience with FAFSA. That being said, if you want to be certain about this question. Again, you should ask your counselor when school resumes in September since FAFSA will be available on October 1st. If you want to double-check or get an answer faster, you can contact the FSA (https://studentaid.gov/help-center/contact). After receiving the answer, if the GoFundMe makes no benefit or difference in your financial situation, then there is no reason for you to start a GoFundMe page and vice versa.
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