Tag Archives: FAFSA

college planning, financial aid

FAFSA time means NOW!

 

February means FAFSA. Parents of teens all across the country are filing out their Free Application for Federal Student Aid. As Jerry Maquire said…SHOW ME THE MONEY. Here’s something every parent needs to know–the money does run out. If you snooze your lose.

financial-aid-FAFSA

Here are 4 articles you should read NOW about filing out the FAFSA:

Got your FAFSA done yet? Here’s why you need to hurry. (from Dr. Strange College blog)

10 Good Reasons to file the FAFSA (from my blog)

6 Ways to Get help on the PROFILE and FAFSA (from The College Solutions blog)

Tools to help you complete the FAFSA (from Education Quest)

If you haven’t done it, time is running out. Don’t wait until your taxes are filed (use last year’s figures if necessary–you can always update the figures once you file). The FREE money goes quickly and you want your piece of the pie.

admissions, college costs, college guidance, college planning, financial aid

University of savings: financial aid tips

mini college graduation cap on cashBig college dreams have a big price tag. Most students use some form of aid to pay for college. According to CollegeBoard, more than $207 billion in aid is available. From federal loans to scholarship contests, opportunities to knock down college costs appear to those who search. Leave no stone unturned and look into these college aid resources to cover the costs.

FAFSA

With the potential for grants, loans and work-study incentives, the Free Application for Federal Student Aid (FAFSA) is square one when it comes to paying for college. The FAFSA analyzes family financial information through the federal-need formula. Among other things, FAFSA takes tax information into account, so Collegeboard.org recommends filing tax returns before starting the application. However, if your taxes aren’t ready, file with estimated amounts from last year and update with correct amounts after filing.

Aimed at providing a path to college for any student, the FAFSA is particularly advantageous for disadvantaged students, who have a better chance to receive free grants and scholarships.

Students can fill out this lengthy application at Fafsa.ed.gov.

Scholarship Contests

Students with 4.0 GPAs and high SAT scores aren’t the only ones who can take advantage of scholarship money. Scholarship contests offer students an equal playing field to show their stuff. Whether it’s an essay, video or presentation, these performance-based contests highlight talent in any field.

Scholarships.com lists news opportunities in various categories, including minority scholarships, corporate scholarships and even non-academic scholarships. A quick Google News search for “scholarship contests” will return the latest contents and deadlines.

Ask your guidance counselor for additional local opportunities, and explore the internet for the latest scholarship offers.

Student Loans

Free money is preferable, but loans enable students to have a classic college experience even if they can’t pay for it up front. This growing trend in financial aid is putting thousands of students through college and collecting payments from millions. In early January, student loan debt in the U.S. surpassed $1 trillion, according to Foxbusiness.com, and that number is expected to grow even more.

The FAFSA provides opportunities for federal student loans. Sallie Mae bank offers a private option to compete with these government offerings.

Loans can provide a worry-free college experience, but don’t over-borrow and saddle yourself with too much debt. Once graduation comes, failing to make payments can compromise your financial stability. The rule of thumb with student loans–borrow wisely.

Unconventional Aid

Some scholarship opportunities don’t fit into traditional molds. Unique scholarships give students that may not otherwise stand out a chance at college aid. The vertically-challenged student, for example, can take advantage of the Little People of America Association’s scholarship for students 4’10” or shorter. Left-handed students that have had to deal with awkward desks and sloppy writing are in luck, too. The Frederick and Mary F. Beckley Scholarship Program offers money for southpaws who demonstrate leadership skills.

Every student has something unique about him or her. Search for the scholarships that separate you from the crowd.

Work and pay as you go

Many students are choosing to work and pay as they go. High school students work during the summers and save for textbooks and other essentials not covered in tuition. Some students choose the community college route, attending classes as they can afford to pay for them. Other students opt to use the work study program at their college to supplement tuition expenses.

Colleges are recognizing that tuition costs are rising the average family cannot afford to chunk down tens of thousands of dollars at the beginning of the school term. They offer payment plans which spread the tuition out over the school year to help parents budget and pay as they go.

College is in reach if you take the time to research the many opportunities available and use that information to make a college choice that best fits into your available budget. Don’t let financial barriers keep you from achieving your dreams; and don’t let financial barriers lure you into overwhelming debt just to pay for a high-priced college.

 

college costs, college guidance, college planning, financial aid, parenting

It’s FAFSA time!


Here’s a great post from the College Board in honor of Financial Aid Awareness month for parents, reminding all of us of the importance of the FAFSA and how to get ready for submission.

It’s time.

fafsa-on-the-web

The Free Application for Federal Student Aid (FAFSA) is how millions of students apply for federal, state and most college-based financial aid. And because government grants compose 74 percent of this $185 billion pool, it’s understandable for families to feel anxious when filling out the FAFSA.

It doesn’t have to be that way. Susan McCrackin, Senior Director Financial Aid Methodology at the College Board, offers this eight-step map to help parents and students work through the FAFSA as efficiently and effectively as possible.

1. Gather Your Documents 

It is much easier to fill out the FAFSA if you have all the needed forms in hand before you start. Here’s a list of documents to get you going. You should also get a U.S. Department of Education personal identification number (PIN.) Here’s the PIN application link.

2. Think About Taxes

Parents’ taxes are an important part in the FAFSA process. Getting taxes done by February 1st may be unrealistic, so last year’s taxes and this year’s paystubs can help create estimates. After February 3rd, the IRS Data Retrieval Tool becomes available, allowing students and parents to access the IRS tax return information needed to complete the FAFSA and transfer the data directly into their FAFSA from the IRS website. And if you owe the government money, take note: you can complete your taxes without actually filing and cutting a check to Uncle Sam.

3. Find Quiet Time  

The FAFSA has a lot of sections. Breaking them into smaller pieces makes the FAFSA easier to navigate. Consider these do’s and don’ts.

  1. Don’t sprint. Take questions one at a time and give yourself time to properly answer each question.
  2. Do read each question carefully and out loud. It will help you understand the question better.
  3. Don’t multi-task. Put your mobile phone away, and turn off the television.
  4. Do find a quiet place where the FAFSA will have your full attention.

4. Stay Student Focused

Parents often forget that the student always provides information. Parents are required to provide their information if the student is dependent.

So when parents see a question that refers to “I,” remember that “I” is the student. “You” is also the student. When questions address parents, you will see questions that refer to “your parents.”  This is where parental information goes.

5. Avoid Parent Traps

As families evolve, so do questions about who needs to provide information for the FAFSA. When you see “parents,” FAFSA is referring to the student’s biological or adoptive parents. When the parents are married, then the student and both parents complete the FAFSA.

If the parents are not together, things can get confusing.  BigFuture by the College Board created a corresponding infographic to help address some commonly asked questions. That infographic will appear on this site tomorrow.

6. Keep Track of Deadlines

Every college has a different set of deadlines based on priority, merit, early decisions etc. BigFuture by the College Board helps families sort through these deadlines with detailed college profiles and a free, customized action plan. And, should you have specific questions about specific colleges or universities, don’t be afraid to call the college’s financial aid office and ask questions.

7. Profile CSS/Financial Aid PROFILE® 

The FAFSA opens the doors to federal aid. There’s also almost $50 billion in non-federal aid available – from colleges, states and private institutions. Some colleges and programs use the College Board’s CSS/Financial Aid PROFILE to help award these monies.

CSS/Financial Aid PROFILE is an online application that collects information used by almost 400 colleges and scholarship programs to award financial aid outside sources from the federal government. Families must complete the application and the College Board sends it to the colleges and scholarship programs they have chosen.

Here’s a list of colleges that use CSS/Financial Aid PROFILE® and where you go to complete the  CSS/Financial Aid PROFILE®.  Sending your CSS/Financial Aid PROFILE® report to one college or scholarship program costs $25. Additional reports are $16 each. There are fee waivers available for low-income families.

8. Gain Experience

The more you experience something, the better you do. This free FAFSA webinar walks you section by section through an actual application with the College Board’s Senior Director for Financial Aid Methodology, Susan McCrackin. Families can access the free FAFSA webinar 24/7.

It’s time. Go after your piece of the more than $185 billion in financial aid to help make college possible. Use BigFuture for advice and to help create a customized plan for your child. Then follow the map. Chances are it will lead to an investment that provides returns for the rest of your child’s life.

college planning, financial aid

10 Good reasons to file the FAFSA

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Parents of college-bound teens look forward to filing the FAFSA as much as they look forward to filing their income taxes. It’s a federal form and all federal forms aren’t exactly user friendly. Many parents are so intimidated by the form that they choose not to file, telling themselves that their student wouldn’t qualify for aid anyway because they make too much. But don’t fall into that trap.

Here are 10 good reasons to file the FAFSA:

1. College is expensive

Even if you’re rich and can afford to pay for your child’s education, it’s expensive. Why would you pass up an opportunity to help with some of the cost?

2. It’s FREE

That’s right. It’s completely free to complete the FAFSA. You’ll spend some of your time completing the FAFSA and you could get thousands of dollars of financial aid in return. So one could say, it’s BEYOND free–they pay you!

3. Getting help is easy and FREE

If you get stumped, help is available using the online help tool or by submitting a question at the FAFSA web site or calling the help number listed on the site. Many schools even host a FAFSA day where they offer help to parents and students on how to complete the free form.

4. FREE money could be waiting for you

According to a recent Reuters article, about 1.8 million lower income undergraduates who might have qualified for aid neglected to file the FAFSA and missed out on financial aid. No matter what your income level, you should file the FAFSA because there is more money out there to be awarded than just need-based aid.

5. Federal money

The federal government provides over $80 billion dollars in grants, loans and work-study programs every year. The only way to get pell grants, perkins loans, stafford loans and other federal aid is by submitting the FAFSA. Federal loans offer the best interest rates and repayment terms for student borrowers and are superior to private student loans.

6. State money

FAFSA is the gatekeeper for state financial aid programs. Each state’s programs are different but they all require the FAFSA to distribute the funds. Check with your state’s higher education agency for deadlines and requirements. In some states the financial eligibility ceilings are much higher.

7. School money

Colleges and private scholarship sponsors offer billions of dollars in financial aid. Even if you don’t have financial need, you may be eligible for these awards. Some school and private scholarship programs are specifically designed for students who were rejected by federal financial aid. Some schools will not award merit aid unless you complete the FAFSA.

8. You’re divorced

The FAFSA only asks about the income and assets of the custodial parent. For financial aid purposes, the custodial parent is the one who has cared for the student for the majority of 2011. If the custodial parent earns a modest income, a student could qualify for financial aid.

9. You have two or more children in college

With two in college, your expected family contribution (what the parents can afford to pay) drops by 50%. Even if you didn’t get financial aid with the first, file the FAFSA because having a second child in college can net you some financial aid.

10. You really don’t have a choice

Look at it this way: FAFSA is the ONLY way to be considered for federal, state and private financial aid. Even if you don’t NEED the aid you still want to get it. Who doesn’t want FREE money?

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For a different perspective, visit my colleague Wendy David-Gaines’ blog (POCSMom) for 10 Reasons NOT to file a FAFSA.

Wendy was a (POCSmom) Parent of a College Student and was once a pre-POCSmom as well. She likes to help parents de-stress during the college process and has written a book of stories and anecdotes to help parents see the lighter side of college.

college planning, financial aid

The Key to Financial Aid Success: Preparation!

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In just under a month, it will be time to file your Free Application For Student Aid (FAFSA) for the 2011-12 school year. The FAFSA is the key to accessing your Federal Student Aid – including grants, work-study and Federal loans – and other valuable financial assistance. Whether or not you think your family will qualify, you should always apply for aid; you might be surprised at the results!

To help you make sure that you do everything necessary to get your college aid, below is a list of tips for preparing the FAFSA for submission. These are just the basics – there’s a much more detailed checklist at the bottom of this post.

If you have any questions, please feel free to reply in the comments and we will do our best to help you out!

Where to File

Starting January 1, 2011, the 2011-2012 FAFSA can filed online or downloaded at http://www.fafsa.gov. Some high schools may also have printed FAFSA forms available.

1. Determine Who Will File: You or Your Student?

The FAFSA is filed in the name of the student – the one who will be receiving the financial aid. You may submit the FAFSA on behalf of your student.

Regardless of who does the actual filing of the FAFSA, the student’s signature is always required, and if the student is considered a dependent, at least one parent must also sign.

2. Determine Dependency Status Ahead of Time

Every student who applies for financial aid with the FAFSA will either be considered a dependent or an independent student. There is a special worksheet created to determine dependency status.

To access the worksheet on the FAFSA website, click here.

NOTE: The current version is for the 2010-11 school year, but there are not likely to be major changes for 2011-12.

3. File Your Tax Returns Early

In order to complete the FAFSA fully, parents of dependent students and students who worked during the past year need to have their 2010 tax return information ready.

4. Gather Documents Before Starting

Filing the FAFSA will be much easier if you have everything together before starting. For the 2011-2012 school year, you’ll need the following documents:

  • Social security and driver’s license numbers
  • Student’s 2010 W-2s and tax returns
  • Parent’s 2010 W-2s and tax returns (if student is Dependent)
  • Bank statements
  • Business financial statements (if student or parents own a business)
  • Citizenship records – alien registration or permanent resident card (if you are not a U.S. Citizen)

5. Use the FAFSA on the Web Worksheet

The FAFSA on the Web Worksheet is a convenient way to organize all of the required information you’ll need to fill out the FAFSA. To access a PDF version of this worksheet, click here. (Note that the 2011-2012 worksheet isn’t available yet)

6. Apply for FAFSA PIN Now

In order to file your FAFSA form electronically online, you will need to sign it. This can be done electronically with a PIN, or you can print, sign, and mail in the signature page which will be provided to you when you complete the FAFSA. Both students and parents need to sign the FAFSA.

See the Department of Education’s FAFSA PIN website for more information.

Questions?

If you start preparing now, filling out your FAFSA on January 1st will be a breeze! If you have any questions or need additional guidance, feel free to reply in the comments below. We look forward to helping you!

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This guest post is contributed by Jeff Sheely, who blogs about financial aid and education financing at Overture Student Loan Marketplace, where students and parents can get information or compare private student loans to make more informed decisions about how to pay for college.

He’s happy to answer your questions in the comments, or you can connect with him on Twitter or Facebook.