If I report a large lump-sum settlement on my FAFSA that all went to bills, will I receive little to no financial aid? ?

Hello, so I was in a bad wreck last March and received a large lump sum settlement, but all of it was used to pay bills/ healthcare reimbursement. Is there any way to show on tax return and/or FAFSA that I literally kept none of it, or will I be screwed because they think I have a ton of money that I don't?

2 Answers

  • 1 month ago

    If the entire settlement was spent on the medical care you needed after the accident and you can show this, just create a separate sheet and attach the settlement and medical payments.  It will not be considered income.  As this could be audited, be sure you have all the paperwork ready because non accident related spending will be considered income.

  • 1 month ago

    More than likely they won't really care what you did with the money, only that you were given the money as a lump sum. Possibly contact the financial aid people and see what they say as a ruling.

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