There are over 4000 four-year colleges in the United States and another 1900 community colleges. Choosing a college can be overwhelming if you don’t narrow down the choices with this simple list of basic criteria. Once you’ve narrowed down the college list, you can get more selective and specific with your final choices.
Here is a list of 10 choice criteria to consider:
Your study preferences—Are they more comfortable in a structured class or do you excel doing independent study? Do you require academic challenge or prefer in-class time with little or no additional study?
Money—Your budget plays a huge factor in the decision process. If your budget is tight, will you consider student loans? And if so, will an expensive private university be worth the debt?
Size—Do you want small class size or does it matter? Does being part of a large student body appeal to you or would they prefer a small college atmosphere?
Location—Do you want to go away to college or stay close by so you can live at home? Are you looking for a cultural experience that a big city offers or a down home experience provided by a small town college?
Extracurriculars—Are you set on joining a sorority or a fraternity? Are these offered at the colleges you are considering? Are there other activities that you feel are crucial to having a positive college experience (i.e. working on a campus newspaper, participating in intramural sports, studying abroad)?
Academics—Is there a specific major you are interested in or will a liberal arts degree do? Not every university offers the same academic disciplines.
Career focus—Do you want to study the culinary arts or fashion design? Consider a school that offers these types of specialized degrees.
Sports—Does the school have a huge sports program or do sports play little impact in your decision?
Competitive vs Non-competitive—Do you have the resume that will ensure acceptance in a competitive college like Stanford or Penn State? Or do you have a strong academic showing that would send you to the top of the list at a non-competitive college and qualify you for a full scholarship?
Specialized programs—Do you want to work in the stock market? Does the school offer a trading room? What about internships, undergraduate research, service learning, and even specialized senior capstone projects (integrating and synthesizing what you have learned).
Juniors should be focusing on college visits and start working on their list. Seniors should review this list and prepare to start their college applications.
A recent educational survey conducted by T. Rowe Price has revealed that almost 45% of parents who are saving for college are using a normal savings account. Only 31% of parents are using a 529 plan for the college-savings purpose.
The prime reason so fewer people are saving through the 529 plan is people are not aware of the 529 plan. The T. Rowe Price survey has revealed that nearly one-third (28%) of the parents are not aware of what the 529 plan is all about.
So, if you are one of the 28% people who are still not aware of the benefits you’ll get from the 529 plan then please read the article once.
The 4 Key points of the 529 plan that you should read first
The 529 plan helps you to save for the education-related expenses of any student in your family. The education-related expenses include college or post-secondary education, tuition fees for elementary, secondary, and religious schools.
The person who opens the 529 account plan is called the ‘Account Holder’ or the saver.
The person for whom the 529 account plan is opened is called the ‘Beneficiary’ or the student.
The ‘Account Holder’ or the ‘Beneficiary’ doesn’t need to be two separate persons, there will be nothing illegal if both are the same person.
10 Benefits of a 529 Plan
Now, maybe you are one of those parents who have heard about the 529 plan but do not have any information about it. Below are 10 benefits of a 529 Plan.
1. You will get the benefit of tax while saving money in the 529 account
In many of the US states, you will get a tax deduction or credit for contribution if you save your money in the 529 accounts. Your money will grow on a tax-advantaged basis in the 529 accounts and if you spend the money saved in the 529 accounts, for qualified education expenses then you can withdraw the money in a tax-free way.
2. The 529 plan helps you to reduce the student loan borrowing
It is a concern that the expenses of higher education are increasing every year. You have nowhere to go but to take out the student loan with a high-interest rate. The 529 plan can provide you with adequate support to lessen your dependence on the student loan.
According to student loan experts, there is nothing better option than a 529 plan to reduce your student loan.
“Every dollar you save is about a dollar less you’ll have to borrow…. Saving money for college lets you avoid paying interest on the money you’d otherwise have to borrow.” Mark Kantrowitz, college finance advisor
3. The grandparents can benefit by contributing to the 529 plan of the grandchild
The grandparents can benefit from the significant tax break by contributing to the 529 plan of the grandchild.
If a grandparent owns the 529 plan for the grandchild, it will reduce the potential tax liability of the grandparents.
The grandparents can also get benefit from the state income tax deduction as per their state rule if they contribute to the 529 plan.
4. The 529 plan is good for them who have started contributing in the account a little late
If you open the 529 plan for your child and grandchild when he/she is in middle or high school, it will not be too late.
Even the college savers can also get the benefit by opening the 529 plan a little bit late. According to the Washington Post, around 46% of Americans live in a state which offers state-specific-income-tax benefit for contributing to the 529 plan. The plan can reduce your tax burden.
There are rules in the 529 plan that if you have started late in contributing to the 529 plan and want the asset to grow then you can withdraw the money from the account a little bit late.
5. Your home state-sponsored 529 plan can provide you some additional tax advantages
Almost all the states, in the USA,sponsors the 529 plan for accredited schools in any state. Many US states offer state income tax deduction for residents who are contributing to their home state’s 529 plan.
This is the benefit of contributing to the 529 plan of your home state, it will give you additional tax benefits.
6. The child won’t lose the other financial aids if you contribute to the 529 plan
Many parents fear that opening a 529 plan can force their child to get less federal financial aid. But this is a wrong conception. The 529 savings plan is considered a parental asset. The child will never get less federal financial aid if the parents contribute to the 529 plan.
7. With the 529 plan, both the amount and date of contribution will be in your hand
The advantage of using the 529 plan is you can contribute in the account whatever amount you will be able to contribute and the annual payment date too will be as you choose to pay.
The minimum initial contribution requirement for most of the 529 plans is $25 and the upper limit of contribution is up to you. Like the contribution amount has no limit, the payment date also is not bound by anything.
Many people prefer to pay a monthly contribution to the 529 plan and others love to pay an annual contribution.
So, you can contribute any amount as you wish and whatever time you may like for contributing the amount.
8. You can have your own choice while selecting a 529 plan
There is a good number of 529 savings plan options available to choose from. If your state is offering a prepaid tuition plan or if you have selected the private college independent 529 plan then you can choose from a wide array of 529 plans.
The selection will give you an advantage if your child prefers to go to a particular type of school.
9. Money withdrawals from the 529 account are both penalty-added and penalty-free
If the student earns a scholarship then the same amount can be withdrawn from the 529 plan without paying any penalty and in tax-free manner.
For any urgent and nonqualified purpose if you need to withdraw money from the 529 accounts then you have to pay the federal income tax and 10% penalty.
However, for any urgent money requirement, you have other ways to obtain the required amount than making non-qualified withdrawals from the 529 plan or by going to the payday lenders.
None of the options will be considered a good decision taken by you. You’ll be penalized for the non-qualified withdrawals from the 529 account or have to make a payday loan debt settlement for repaying the urgent payday loan.
So, use other options if you need money for some urgent purposes.
10. The 529 plan will provide special benefits for students that a traditional savings account cannot give you
To bear the educational expenses, the 529 plan is best in the USA. The problem is parents are not aware of the 529 plan and they cannot differentiate between the 529 plan and the regular savings account, traditional and Roth IRA.
You won’t get any tax benefit for saving your money in the regular savings account, traditional and Roth IRA for educational purposes. You will get the tax benefit only by contributing to the 529 plan.
So, when you aim to save for education, you should depend only on the 529 plan.
All the experts have advice on how many schools to apply to: some say 7, some say 10 and others say the more you apply to the better your chances. For me, the number isn’t as important as the content. A good college list needs to be well thought out and researched.
A good college list should have three “fit” criteria: financial fit, academic fit, and emotional fit. Once your student has a tentative list, ask if they have all three criteria before finalizing the list.
Financial Fit
Does the college fit into your family’s budget? If it doesn’t fit financially, cross it off the list. While you should never consider a college solely based on the sticker price, you should certainly examine what will happen if your student is accepted and doesn’t receive any financial aid. Remember when factoring in cost, don’t forget about the add-ons. They can add up and have a substantial effect on your budget.
Academic Fit
Does the college fit into your student’s academic aspirations? This might seem like a no-brainer, but the education is a key factor in attending college. Cross the college off the list if it doesn’t fit into your student’s academic learning style. For instance, is your student looking for smaller class sizes and strong relationships with his professors? A larger university won’t offer this.
Emotional fit
Can your student see himself attending college there? When he visited the campus, did it “feel” right and did he have a rapport with the students he came in contact with? You might think college shouldn’t be an emotional decision, but it is. After all, they will be spending at least four years of their lives there. If they don’t fit into the social climate they will be miserable.
Where does your student fit?
Another thing to consider is positioning. Is your student positioned well with the other applicants, especially if you are looking for merit aid. Are their scores, grades, and achievements good enough to put them at the top of the applicant pool?
As you can easily see, there’s more to refining a college list than picking a college with Greek life or college sports rankings. It’s a place your student will call home and he needs to feel comfortable there. Once you’ve determined if the college has all three criteria, add it to the list. It’s a keeper!
So much time is spent preparing for the actual college choice and application that very little time and effort goes into prepping for these valuable life skills. They may be prepared for the academic rigors of college, but neglecting to prepare for all the other aspects of college life might affect your success and ultimate degree completion. It’s your role as a parent to make sure they have these skills before they leave for college.
We must, as parents, raise an independent student. That means they must know how to self-advocate. They must know how to say “no” to behaviors that have negative consequences. They must be responsible with their time and their money. It’s no easy task and in today’s world, we have to add the ability to make wise social and economic choices.
Financial skills
When your student heads off to college there will be many financial decisions they need to make, beginning with how much student loan debt they are willing to incur. Use loan repayment calculators to determine the amount of re-payments after graduation and use these figures to make wise decisions about loans. They will also need to know how to budget their money in regards to other college costs such as books, living expenses and entertainment. Add to that the knowledge of credit card rates and how easily it is to fall into debt using them for simple things such as pizza. Many students graduate from college with over $10,000 in credit card debt.
Social skills
If your student is headed off to college to hook up with the party scene, they are in for a rude awakening when their first semester grades are released. Many students forget that partying affects their study time and class attendance. If they are exhausted from partying the night before, they are less likely to get up for that early class. Recognize that while making friends and enjoying the social scene are necessary for their overall satisfaction of the college experience, they should not forget the reason they came to college: to get an education. Discuss with them how to balance their social life with their academic life before they leave in the fall.
Academic skills
College is not like high school. Professors expect that your student do their assignments and they don’t check up on you if you don’t. Coming to college with refined study and organization skills will help your student adjust to the rigorous course requirements of a college degree program. Managing their time is also important as it relates to class assignments, studying for tests and preparing term papers.
Mental skills
College life produces a whole new set of mental and emotional problems. Many students face homesickness early and should recognize that those feelings are normal. They should go to college with the skills needed to cope with stress and the feeling of loneliness that often occurs. Recognize that all these factors contribute to their overall mental health and know beforehand where they can find help if they need it.
Problem solving skills
College is no different than life—obstacles occur on a daily basis and you will need the skills to deal with those obstacles. Your student will be confronted with conflict and should know how to resolve that conflict, either by themselves or with a mediator (such as an RA or student advisor). They will face situations that require them to advocate and they should be comfortable doing this before they head off to college and become completely independent.
The question we should all be asking our students is:
Are you prepared for college?
I’m not talking about academic, extracurriculars, or standardized tests. I’m talking about the “real” college prep: adulthood. Because this is the most important college prep of all. If your student isn’t ready to study without being constantly nagged, attend class without a wake-up call, or make wise choices when every negative influence in the world bombards them, then he or she is not ready for college.
Do you have a to-do list for your future college student? Can they live within a budget? Do they understand the importance of study and class attendance? Do they know how to choose the right friends? Will they make wise choices about alcohol, sex and other risky behaviors. Preparing them for college is so much more than academics.
Get this book: Toward College Success: Is Your Teenager Ready, Willing and Able? Read it and apply its tactics. When your student goes off to college they will be prepared for the real world which can sometimes be cruel; but a learning environment preparing them for adulthood.
Most parents want their student to win scholarships. Even if you can afford to pay for college, free money is always welcome. But talk with parents and parent groups and you can hear the frustration:
My student isn’t motivated to search for scholarships.
My student has applied for so many scholarships and hasn’t won a dime.
Where do we search? Should we sign up on all the scholarship search engines?
But the number one questions parents ask is:
How can I help my student search and apply for scholarships?
Your student will need an organized system to help with the scholarship search and application process. You can help! Encourage your student to set up Google docs for scholarships with the name of the scholarship, requirements, due dates, and information needed for each.
As you find scholarships, you can add to the list that will be easily accessible to you and your student. This will also help you stay on top of deadlines so you can quickly text a reminder to your student.
Help with searching
You can help your student search for scholarships. While you are waiting in just about any line, you can use your smartphone to search. You can use Google or there are apps available to help you search.
Watch the news, look at community bulletin boards, talk to family and friends and search local organizations for scholarship opportunities. You can keep a notebook with you, or just open the Google doc and add the scholarships you find.
Help with proofreading
You can’t write their essays or fill out their applications, but you can proofread and double check the requirements before your student applies.
Help with reminders
Email or text your student when deadlines are approaching to remind them to submit the application on time. With so many things to do, it’s hard for students to stay on top of deadlines.
In high school, my son participated in the Navy Junior Reserve Officers Training Corps program and had high hopes of attending a military academy after graduation. However, due to less-than-stellar SAT scores and our family’s general lack of understanding about how the application process worked, he was denied admission to all of them. It was difficult dealing with disappointment.
If you’re the parent of a high school senior whose sights are set on a dream college, you don’t want to anticipate dealing with disappointment. But you also know that, given the competitive and subjective nature of college admissions, rejection is possible…even likely.
I have a colleague who won’t call it “rejection” — he has dubbed the two decisions students receive an “offer of admission” and “no offer of admission.” Language like this might ease the blow somewhat, but your teen will not be comforted. The disappointment will be enormous, and real.
How do you handle your own feelings?
First of all, be ready. Those disappointments are on their way and even if you vow not to take a rejection personally (after all, you’re not the one applying to college) it’s nearly impossible not to. This is your child; you are bound up in his sorrows and joys. And his application was stellar! “How can they reject my student?” you will wonder in outrage, speculating about who may have gotten in instead and taken “his” spot. Suddenly you realize that you, too, had pinned hopes on a future that included Parents’ Weekend on a certain idyllic campus.
When we acknowledge our own disappointment, we can make sure it stays where it belongs — in our own hearts. The last thing we want is to magnify our student’s pain. He feels badly enough already without feeling that he has disappointed his parents.
How do you support your student’s feelings?
Every student reacts differently. Some will shrug off the rejection letters, understanding that it is just part of the process, but others will view a rejection (or two or three) as the end of the world. At the moment that your student is absorbing this news, all the truisms in the world (“Everything happens for a reason,” “It’ll work out,” “You don’t want to go there if they don’t want you,” etc.) won’t help. Hold him, hug him, and let him know that you share his pain. He needs time to express his emotions and deal with the disappointment in his own way.
What do you do after you’ve both had time to grieve?
Once some time has passed and your student is able to be objective, embrace the life lessons. Point out that disappointments often turn into opportunities (it shouldn’t be too hard to dig up some examples from your own life!). Assure him that success in college is more about his attitude than the name on the T-shirt, and even though College “A” didn’t work out, there is a place for him — a terrific school where he is wanted and where he will thrive. On that note, move on to the colleges that mailed the fat envelopes. If there is more than one, he now has the fun task of making a choice. He’s back in the driver’s seat.
When my son was turned down by the military academies, he turned to Plan B and enlisted in the U.S. Marines. After four years of service and the passage of time, he saw himself in a new light. He applied to college, was accepted, and graduated with honors. Back when he was a high school senior, the rejections seemed momentous. Later, he recognized that they had been merely a bump in the road and an opportunity to re-evaluate his goals.
It’s hard. I know. I’ve been there. You want your student to have the BEST education available. You want them to want it as much as you do. You see them making some choices that you know they will regret. As hard as you try, you find yourself pressuring them to make the right choice and the battle lines are drawn. They dig their heels in. You dig your heels in. And the tug of war begins.
What’s a parent to do when you feel your college-bound teens are making the wrong choices related to college? Take a deep breath and read these examples (along with my suggestions). Parenting for college can and probably will be a struggle.
Your college-bound teen tells you he doesn’t want to go to the college that is hard to get into and is opting for what you consider to be sub par.
Don’t panic or overreact. It’s possible he is scared. Try and ascertain the reasoning behind the decision. Don’t do this by badgering him or constantly asking him why. The best way to figure out what is wrong is to LISTEN. Listen to him talk about his day, about college, about how he feels. If fear is not the reason, perhaps he feels the other college would be a better fit. If that’s the case, do yourself a favor and back off. The worst thing you can do with a teenager is force him into a decision he feels is wrong. Sometimes the best lessons we learn are the ones that come from making our own decisions (right or wrong).
Your college-bound teen tells you that he simply MUST go to Private College A, even though she knows it comes with a high price tag.
Don’t let her bully you into sending her to a college you can’t afford AND one that will require a tremendous amount of student loan debt. Sit her down and explain to her the dangers of graduating in debt. Use the college repayment calculators if you have to. If she truly wants to go to Private College A, she needs to do the work (good grades, good SAT/ACT scores, great essay) to be awarded scholarship/grant money from that college.
It’s also worth considering that a private college may be similar in cost to a public university. Since many private colleges have generous alumni that donate, they often award large merit scholarships. Public universities are not as generous with aid.
Your college-bound teen is not interested in college, deadlines, studying for the SAT or any other path that leads him toward higher education.
If there is one thing I learned with both of my kids (and clients), if they aren’t invested in the college process they won’t be invested in college. Save yourself some time, money and heartache and wait until they are. If not, they can learn from the college of hard knocks–minimum wage jobs are the BEST motivator!
It’s also important to note that not every student is meant for college. There are, indeed, other options. Many have taken those different paths and been perfectly successful and happy. It could be time to consider alternatives to college.
Your college-bound teen misses deadlines, panics and comes running to you at the last minute to fix it.
The simplest way I know to avoid missing deadlines, is to get yourself a huge wall calendar and a fat red marker. Put it in a place that they have to pass by every single day. In addition, with all the smartphones and calendar apps available today, missing a deadline should be a thing of the past. At some point (hopefully when they go to college), they will have to fix their own problems. Let them do it now, while they live at home, and it will be easier for them once they are gone. Rescuing your kids all time only makes them into dependent adults and colleges aren’t impressed with those type of students or the parents that come with them.
Your college-bound teen suddenly announces she is not ready for college and wants to take a year off.
First of all, wait. Don’t react. Just listen. Odds are the mood will change with the wind and once all her friends are making college plans, that desire that she once had will kick back in. If not, let her know that it won’t be a “free-ride” year.
With the pandemic, gap years are becoming prevalent. Your student can use the time to investigate career options, work at an internship, volunteer in the community, or simply work and save money toward college.
If you have any questions or personal experiences you would like to share, please leave a comment here and share it with other parents. We learn from each other and from our mistakes and successes!
The world we now live in is resoundingly different than the world we grew up in. Applying to college has become the norm and parents and students take it seriously. The competition to get into college can be overwhelming at times for both parents and students.
Parenting has changed
In the 50’s, our parents let us have the run of the neighborhood. We rode our bikes everywhere, walked home from school alone, and rode the bus to the movies alone. In the summer, we left the house early in the morning and returned home in time for dinner. Our teachers terrified us and we knew if we misbehaved, our parents would back them up. There were no car seats or safety belts. You would never find anti-bacterial soap or even consider using it. When we turned 18, we either went to college or got a full-time job and moved out of the house.
began to change. Because of Adam Walsh, we watched our kids like a hawk. We weren’t quite ready to take away their freedom, but we worried. We worried about where they were, who they were with, and what dangers they might encounter when they were at school, outside, and at the mall. Parents began to question a teacher’s authority and loosened the grip on the discipline of their children. Spanking became taboo and “time out” emerged as a parenting technique.
At the beginning of the 21st century helicopter parenting emerged. It’s not like we planned for it to happen. It just did. We sheltered our children from any disappointment. Everyone on the team got a trophy. There were no winners or losers. We questioned all school authority. We would never consider letting them walk home alone or play outside without supervision. If they forgot their lunch, we took it to them. If they left their homework at home, we took it to school. We began to make every decision for them and protect them from every consequence. We began to feel the “parent peer pressure” for our children to be the best and the greatest. If they graduated from college and couldn’t find a job, they came home to live and thus the term “boomerang” generation was born.
How do you walk the tightrope of helicopter parenting?
How do we raise our children in this frightening world without overprotecting them from the disappointments and trials of life? What are the long-term risks of helicopter parenting?
Combine a little of the 50’s parenting, some of the 80’s style of parenting, and a very small amount of the 21st century parenting for the perfect parenting balance. There’s a fine line between cautious parenting and being a helicopter mom.
Ask yourself this question–Do you want your children to be independent successful adults or do you want them living in your basement for years and years depending on you to pay their bills and take care of them? Is it conceivable they will be going off to college and surviving alone, or calling you every day crying for help, or needing assistance with every life task? Will they be running home because they simply can’t survive without you?
My guess–your answers to every one of these questions would be a resounding NO!
For many parents, this will be the first year you will complete the FAFSA. Since you have never completed it before, you won’t notice the changes. However, it’s important to note the functionality of the form and the functions of the mobile app.
The Department of Education (ED) released a document this month summarizing the changes to the 2021-22 FAFSA. The most notable changes are the increase of the income threshold for the automatic-zero expected family contribution (EFC) and questions asked about the Schedule 1 tax form.
The 2021–22 FAFSA changes include the following:
The income threshold for an automatic zero Expected Family Contribution (EFC) increased from $26,000 to $27,000 for the 2021–22 award year.
When students and parents use the IRS Data Retrieval Tool (DRT), the IRS DRT will now transfer information about whether they filed a Schedule 1. The answer will be based on all current exceptions for filing a Schedule 1. The transferred data for the Schedule 1 fields will be masked.
For students and parents who don’t use the IRS DRT, the Schedule 1 help topics will be updated to include all current exceptions for filing a Schedule 1. “Capital Gains” has been removed as an exception and “Virtual Currency” has been added as an exception.
Many FAFSA help topics referencing financial forms now feature images of those forms with relevant line numbers highlighted.
In early June, ED published the federal need analysis methodology for the 2021-22 award year in the Federal Register. Per Section 479(c) of the Higher Education Act (HEA), ED is required to annually adjust the income level necessary to qualify an applicant for the zero expected family contribution. This adjustment is made according to increases in the Consumer Price Index (CPI).
New functionalities in the MyStudentAid mobile app will include:
Dashboard – Access various types of popular tasks and a personalized page to help you determine what actions to take.
Settings – Edit/manage your account, using your username and password (FSA ID).
Aid Summary – View your federal student loan and grant history.
Notification Center – View and manage notifications regarding your student aid; household member and enrolled in college calculation assistance.
The paper FAFSA PDF will become available in October, and the color rotation for the paper form is green for 2021-22. FAFSA worksheets in English and Spanish will also be available.
When completing the FAFSA, even though it’s available October 1, it’s generally good to wait a week or two before filing because there will most certainly be kinks in the system–it happens. Don’t wait too long, however. With financial aid, the sooner you apply the better chances you have of snagging some of that free money!
Don’t forget to read the other articles related to FAFSA Week:
If you break it down, the 2021-22 FAFSA isn’t that complicated. Because it’s a federal form (like income taxes), many parents and students are hesitant to tackle it. If you take it step-by-step, it’s much easier. Here’s a synopsis of the requirements and the sections of the 2021-22 FAFSA.
Information you will need to complete the FAFSA
Use this list to gather all the information necessary before you begin:
Your FSA ID, which you can create on fsaid.ed.gov. Note that students and parents will need to create their own FSA ID and keep it private.
Your social security number and driver’s license, and/or alien registration number if you are not a U.S. citizen.
Your federal income tax returns, W-2s, and other records of money earned.
Your parents income tax returns, W-2 forms and 1040 forms if you’re a dependent.
Bank statements and records of investments (if applicable).
At each online step, a “help and hints” box pops up at the side, in case you need guidance. Here’s a short synopsis of each section from CollegeXpress.
Student eligibility
This is pretty basic: the name of your high school, what year in college you’ll be entering, and your parents’ level of education. This is also your chance to opt into federal work-study. Consider saying yes if you aren’t sure; you can always decline later if you change your mind.
You will also be asked if you have registered with Selective Service (the military draft). Nearly all men age 18–26, including undocumented immigrants and people with disabilities, are required by law to register—and if you aren’t registered, you will be denied federal financial aid. You can register via the FAFSA form by checking a box.
School selection
Here’s where you enter the names of the colleges you plan to apply to. You can add as many as 10, but don’t worry if you haven’t finalized your list. If you want to add another or make changes, you can do it later.
For each school you include, you will be asked if you plan to live on campus, off campus, or with your parents (because you won’t need funds for room and board if you will live at home). For state aid, some states require that colleges are listed in a specific order; check the federal aid website to see if your own state is fussy about this.
Dependency determination
Colleges want to know if your parents support you or if you are an independent adult. The vast majority of high school students are considered dependent for college financial aid/FAFSA purposes. However, you’re generally considered an independent student if you are:
24 years old by December 31 of the award year
A graduate or professional student during the award year
Married (or separated)
A parent or have other dependents who currently receive more than half their support from you
An orphan or a ward of the court
A veteran of the US Armed Forces
Otherwise, you are most likely a dependent student.
If your family situation is complex (for example, you are a minor but don’t live with your parents or don’t have access to their financial information), you can find some guidance on the federal student aid website.
Parent demographics
You fill this FAFSA section out if you are a dependent. Aid decisions will consider your parents’ age (because older parents may need to conserve more for retirement), how many children they support, and, most important, if they will have additional children in college that year. Each of these elements affects the calculation for your Expected Family Contribution (EFC), so answer the questions carefully. For example:
Older parents are expected to contribute less since they are closer to retirement.
Parental contribution is divided by the number of students in college.
If the parents are divorced or separated, include only the financial data of the parent with whom the student lives for the greater part of the 12 months preceding the date of the application. If that parent has remarried, the student must include that stepparent’s income and asset data as well. Note: some colleges request information on the “other” natural parent and may expect a contribution from that parent as well.
Financial information
You will need to fill in your parents’ adjusted gross income from the 1040 form, or whichever form they file. (Or your income, if you are independent.)
The IRS Data Retrieval Tool really shines with this part of the FAFSA, because it transfers your tax information directly to the form, saving time and eliminating the chance of a mistake.
You’ll also be asked about assets—both your parents’ and yours. That’s right: the money you’ve saved from summer jobs, birthdays, or bat mitzvah gifts—all of it is fair game. And your colleges will expect you to contribute a percentage of your savings to your college tuition.
Of course, your parents will need to report their savings and investments too, including money market accounts, mutual funds, 529 college savings accounts (yours and any siblings’), and investment real estate (not your family’s primary home).
Qualified retirement accounts—IRAs, 401(k), 403(b), or pension plans—aren’t counted as assets. As always, you can find guidance in the pop-up help boxes at the right side of the page.
Sign and submit
After you’ve finished the FAFSA’s financial section, you add your electronic signature with your FSA ID and hit submit. That’s it.
For a visual step-by-step guide to completing the FAFSA, follow this link:
