Many families think there’s no point in doing the FAFSA because they assume they don’t have financial need. That reflects a fairly limited view of the FAFSA; in fact, there are plenty of good reasons why every family of a student who’s even potentially college-bound next year, regardless of the family’s financial position, should do it. Continue reading Haven’t Done the FAFSA Yet? Here’s Why You Should
Category Archives: FAFSA
Five Questions for College-Bound Students
It’s time for my annual financial aid presentation at my kids’ high school. This year the topic is Five Questions for College-Bound Students, which your families might also want to discuss. Continue reading Five Questions for College-Bound Students
FAFSA vs Profile
The FAFSA gets a lot of attention right around now, but it’s only one of two financial aid forms. The other is the CSS Profile, used primarily by private colleges and universities.
The Profile differs from the FAFSA in several major respects: Continue reading FAFSA vs Profile
Simplified Formula: Not So Simple
The FAFSA offers a “Simplified Formula” that eliminates asset reporting for low-income families– those with household incomes below $50,000. There are some eligibility limitations, primarily designed to limit the Simplified Formula to those who truly have low incomes, not those who are able to manage or artificially reduce their incomes. In the past, in order to qualify for the Simplified Formula, filers must have filed or been eligible to file a 1040A or 1040EZ, or have received a means-tested federal benefit such as Medicaid, SNAP or SSI. However, the Trump tax reform of 2018 eliminated the different versions of the 1040, so the eligibility criteria changed. Continue reading Simplified Formula: Not So Simple
Do the FAFSA ASAP If…
Now that I said that many people don’t need to rush to do the FAFSA on Day 1, there are circumstances where you do want to do it as soon as possible: Continue reading Do the FAFSA ASAP If…
When to File the FAFSA
It’s the big day: the FAFSA is here! So, you need to file it right away, right? Not exactly.
First, schools generally won’t do anything with your FAFSA until they have an application from your student, so the earliest you need it done is the end of this month if you’re applying Early Decision or Early Action. Remember that the main factor that you can influence at this point in the FAFSA is your assets, since income is from 2018’s tax return and assets are on the date you file. So here are some factors to consider: Continue reading When to File the FAFSA
FAFSA Basics: Divorced Parents
Divorced parents who share custody of their children often wonder who should fill out the FAFSA. And even in cases where custody is not joint, there may be questions. Continue reading FAFSA Basics: Divorced Parents
FAFSA Basics: Student Income
Student income seems pretty straightforward on the surface. Students get an income protection allowance of $6,840 plus the same tax allowances as parents. Income in excess of the allowance is assessed at 50%. Given the prevailing minimum wage, it would appear that student income is not much of a factor. However, there are a few big items that get added into student income: Continue reading FAFSA Basics: Student Income
FAFSA Basics: What’s NOT Included
I spent the weekend dropping my daughter off at college and I’m still glowing from UChicago’s amazing orientation weekend for incoming students and families. Now I have to pay her tuition bill which is helping me to make the mental transition back to real life. Continue reading FAFSA Basics: What’s NOT Included
FAFSA Basics: An Example
Having gone through the FAFSA formula, let’s take a look at how it works with a few scenarios that illustrate how small changes can have big impacts on EFC, or alternatively, how big changes can have small impacts. Our hypothetical family is a family of four with two children, one a high school senior and the other a high school junior. Both parents are 48. Their 2018 household income was $106,800 and they filed married filing joint in 2018. They live in Oregon. To simplify life, let’s assume that all $106,800 is earned income. Neither student has income above the student income protection allowance ($6,840), nor does either have any assets. Continue reading FAFSA Basics: An Example