Category Archives: Need-based Aid

FAFSA FAQs 2

Q: I won’t qualify for financial aid. Do I need to fill out the FAFSA?

A: Yes! Regardless of whether you think you’re eligible for aid, you should complete the FAFSA. You have to complete it if you (or your student) intends to take out federal student loans, which are available to anyone regardless of need. If you have any intention of borrowing, the Direct Student Loan should be your starting point. Plus, some Continue reading FAFSA FAQs 2

FAFSA FAQs

The FAFSA for the 2018-2019 school year is here. Here are some FAFSA FAQs:

Q: What does FAFSA mean by “income?” Gross, taxable, AGI? Something else?

A: All of it. FAFSA wants to know each parent’s gross income, including tax-deferred retirement plan contributions. The easiest way to take care of the income is to use the IRS Data Retrieval Tool (DRT) to directly transfer income information to the FAFSA. After Continue reading FAFSA FAQs

Aid Formulas

If you’ve been reading this blog for a while, this is a bit of a refresher post.

There are three aid formulas: Federal methodology (FM), based on the FAFSA; Institutional Methodology (IM), based on the CSS PROFILE; and Consensus Methodology (CM), which uses both aid forms. Each is a different way of calculating a family’s Continue reading Aid Formulas

2018-2019 FAFSA Formula is Here

Wondering about income and asset protection allowances for the coming FAFSA? The FAFSA EFC Formula Guide for 2018-2019 is available here.

Unlike the past few years, the changes this year are pretty modest. The income and asset protection allowance for parents went up nominally. For example, the income protection Continue reading 2018-2019 FAFSA Formula is Here

Summer Jobs and FAFSA

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