Category Archives: FAFSA

Summer Jobs and FAFSA

529 Plans, Cost saving strategies, FAFSA, Financial Aid, Need-based Aid

The FAFSA’s new timing– fall instead of spring and prior-prior income year– means that many students’ summer jobs will have a bigger impact on their EFC. That’s because any amount of money they made that is still in their bank account when they fill out the FAFSA is an asset that will be assessed at 20%. (Remember, students don’t get an asset protection allowance.) Need-eligible families may want to consider a couple of steps to Continue reading Summer Jobs and FAFSA →

Borrowing: Where to Start

FAFSA, Student Loans, Tax Credits and Deductions

I’ve probably said this before, but there are families staring down tuition payments for the first time right around now. Most families use a combination of savings, cash flow and borrowing to pay for college. The first two are reasonably straightforward; they’re yours, after all. Borrowing is more complicated, and chances are that if you have a high school student, you’re getting lots of mail about education loans that are available to you. Continue reading Borrowing: Where to Start →

Can You Use a Roth IRA for College? Should You?

529 Plans, Cost saving strategies, FAFSA, Financial Aid, Need-based Aid, Student Loans, Tax Credits and Deductions

Today’s post is written by a fellow fee-only advisor, Greg Phelps, CFP®, CLU®, AIF®, AAMS®, of Redrock Wealth Management. 

Saving for a child’s college education is perhaps one of the most noble things a parent will ever do. It’s also one of the toughest financial goals to tackle, because similar to healthcare costs, college expenses have risen across the board at 5% per year. Continue reading Can You Use a Roth IRA for College? Should You? →

Negotiating an Aid Award

Application Process, Cost saving strategies, FAFSA, Financial Aid, Merit-based Aid, Need-based Aid

My apologies if this is a little down-to-the-wire. Then again, you might do better waiting until the last minute to negotiate an aid award. If you’re planning to do so, here are a few things you need to know.

The first step is to determine what type of aid is being offered, need or merit (or a Continue reading Negotiating an Aid Award →

How America Pays for College

529 Plans, Application Process, Cost saving strategies, FAFSA, Financial Aid, Merit-based Aid, Need-based Aid, Student Loans, Tax Credits and Deductions

Sallie Mae’s annual How America Pays for College report has some good news: In the 2015-2016 school year, the average amount families spent on college went down slightly, to $23,688. The biggest decline came on spending for 2-year colleges; families with students in 4-year schools reported spending about the same as in the previous year. In Continue reading How America Pays for College →

Tax Season Tip: Income

Cost saving strategies, FAFSA, Financial Aid

Since taxes seem to be top-of-mind for everyone, here’s a quick tip for bringing your income down on the FAFSA or CSS PROFILE: Don’t get a state tax refund. If you do, you have to report it as income. Check with your tax preparer to determine the right amount of state withholding that avoids both a refund and a penalty for underpayment. If you use tax software like TurboTax, it can calculate correct state withholding as well.