4 Tips for Completing the FAFSA

It is the time of year that college-bound students and families start to look beyond what school they may attend to what the financial aspect of the investment will look like. 

All students requesting financial assistance from institutions of higher learning must complete the Free Application for Federal Student Aid (FAFSA) to begin the process of determining how much aid specific colleges can offer the incoming student.  A paper version of the form is usually available in any high school guidance counselor or local college financial aid office.  However, most current applicants submit the FAFSA online.

Provide an accurate household size.  This figure is often mistakenly submitted on the application as families have confusion on who qualifies as an actual member of the household.  It has nothing to do with relation, but pertains to anyone two which the student's parents (or the actual student) provide more than half of their financial support.  This can be siblings or other family members (possibly elderly) that spend part of their time away but still are supported over 50% by the household. 

Choose the right parent.  Those students with divorced parents face additional confusion when completing the FAFSA.  The regulations dictate that the students submit financial information for the parent (and any new spouse) that provides over 50% of support to the student.  It does not matter which parent claims the child on their tax return or who has greater court-determined custody.

Proofread for accuracy.  Numerical errors and misunderstanding the instructions are very common mistakes that can delay or greatly alter the ease of the application process.  The line that produces a great deal of mistaken answers is the question regarding income tax.  This is not Adjusted Gross Income or the amount of taxes withheld.  It is the number of tax owed, which is only found on IRS Form 1040 (line 55), 1040A (line 35) or 1040EZ (line 11).  It is also important to make sure any names listed are full names that appear on the person's U. S. Social Security card.

Stating Actual Wealth.  Application answers are to be stated as they are on the day the form is signed.  Therefore, if there are major financial situations on the horizon consider how they will affect potential financial aid eligibility.  Pay any large up-coming expenses or submit the form before any anticipated large monetary or real estate gifts.

FAFSA - Where to Start When Seeking College Funding

An important group of letters every parent should be aware of when considering college for their children is FAFSA. The free application for federal student aid is available online, but if you don't get your name in the hat early, there might not be any funds left when the bell rings on the first day of school.

It may seem that the paperwork for college grants and financial aid are made so that no one can understand how to successfully apply and obtain assistance. Something as simple as a tax return can stop the wheels from turning and place you back at square one. If you wait until the April 15 filing date to send in your tax return, you miss getting your application in early and having the best chances of obtaining college funds.

You can conveniently find deadlines for filing by visiting www.fafsa.ed.gov/deadlines.htm at the FAFSA website. All you need to do is select your state from the drop-down menu and what college your child plans to attend. Keep in mind that your application should be submitted early.

Who Gets the Scholarships?

Scholarships offered in your area are often aimed at the top three percent of the graduating class. What this often means is a few students may get many of the scholarship offers, but they can't possibly use them all. In some cases, the scholarships that are turned back in go to other deserving students, but many times the money goes back into the fund until the next award.

Not landing in the top 3% in no way indicates that your student is not college material. It simply means you'll have to work a little harder to get funding assistance for college expenses.

If your child is not in that upper level, you may be able to find out what happens to scholarships that are not awarded due to default. If you only have time to apply to a limited number of programs, it would be better to spend your efforts on those who will definitely fund the scholarship to someone.

Apply for as many grants and scholarships as you can and as early as possible. Those who obtain college funding assistance are the ones who spend the extra time and learn everything they can about FAFSA.

How to Avoid Financial Aid Scams

College is expensive, and becomes more so each year as the population of aspiring, high-achieving students graduating from high school grows. Its not surprising that a number of families rely on private, state or federal financial aid in order to achieve their college dreams.

In association with this, unfortunately, is a rise in financial aid scammers – individuals who prey on students and families overwhelmed by the costs and complexity of Financial Aid, and who frequently promise great results only to disappear with the wind.

Here are some tips to avoid Financial Aid scams:

1) If it sounds too good to be true.... A lot of financial aid scammers will guarantee results, regardless of the family’s financial situation or the student’s scholarship acumen. The simple fact is that most Financial Aid is awarded on based on those two factors, and guaranteeing funds blindly usually means that the provider is scamming you.

2) Being asked for banking information. Although college Financial Aid teams need to know your financial situation, they don’t need your specific banking details (account numbers, credit card numbers, etc) to qualify you. Being asked for this critical and confidential information is a red flag.

3) Being offered the “inside track”. Similar to the first point, if a financial aid advisor says that they have exclusive access to the Financial Aid department of a college, or they have information that only they can give you, you should be cautious. Financial Aid information is generally very publically and prominently made available by institutions. Although advisors and consultants may have good relationships with Financial Aid departments, that doesn’t imply that they have exclusive access to any financial opportunities.

4) Check third party credentials. If the advisor or consultant does not offer any credible associations with certifying organizations, be warned. The best Financial Aid consultants are active members of associations that have strict guidelines for their members, including the Higher Education Consultants Association and the Independent Educational Consultants Association

The Financial Aid process for college admissions can be daunting, but it should always be transparent and, if laborious, at least risk-free for applicants. Having an experienced guide for the Financial Aid process can make the process easier and less stressful. Be sure to work with a consultant who has a proven track record and promises only what is ethical and reasonable to deliver –  experience, guidance, and hands-on advice to achieve your college dreams!

Financial Aid - Answers To Your Questions

Please join us for our “From High School To College Made Simple” Teleseminar Series on Tuesday, December 14, 2010 at 7:00 PM EST for “Financial Aid-Answers To Your Questions.”

With over 100 colleges in the United States now reporting annual costs of over $50,000 for the first year, it’s a very important topic to a lot of students and their families! You may be asking yourself if you can afford to send your child to a top college, or wondering if your savings will hold out past the first or second year.

This Teleseminar will focus on helping students and families understand the Financial Aid process. The topics covered are:

• How to qualify for financial aid, and how to define the Expected Family Contribution (EFC)
• Which forms are required by colleges to determine the EFC?
• Different types of financial aid and how you can avoid leaving free money on the table.
• The 3 biggest mistakes families make and how to avoid them.

All you need is a phone! Call in and listen to the call OR listen to the recordings at your convenience.
You can join monthly calls at anytime for just $29.95 a month.
To join, click here http://www.a2zcollegeplanning.com/basic-college-planning.html

As always, your  questions are welcome on this topic.  At the conclusion of the teleconference, we will answer pre-submitted questions.  Please send your questions to: info@a2zcollegeplanning.com.

The Senior Year Calendar

Already looking forward to going to your dream school... or sending your child away to their dream school?  By now, you've probably already sent in early applications to a chosen few schools. It's early in the 2010-2011 school year but if the prospective college student is in senior year, it's already time to start planning what you're going to do in the new year:

January: If you have any applications to complete, get them done!

February: It's time to fill out your FAFSA – Free Application for Federal Student Aid.  If you are applying for any sort of student aid, get this done.  The student will need information from their parents, which customarily arrives this month.

Stay organized! The college application process is complex, with many parts. You need to make sure that colleges you've applied to have received all the relevant information.  If you aren't keeping a list or a spreadsheet of what needs to be sent and when, start now.

March: Acceptance letters start arriving from some schools.  If you're in, congratulations!

April: By now you may have to make a decision on what school to accept.  If so, use the time you have; this isn't a decision to be taken lightly.  Let every school that accepted you know what your decision is, even the ones you won't be going to.

May: By now you should be making financial arrangements with the school – a tuition deposit, residence, and the like.  Don't forget to look into transportation arrangements and moving.  The beginning of the school year is the biggest moving day of the year and you don't want to get stuck without transportation, or stuck with really expensive arrangements.

Oh, and concentrate on your grades!

June: College may still be a few months away, but now is the time to make moving arrangements if you're moving – getting a phone, finalizing living arrangements, and yes, even packing.  Some colleges will already be offering early registration into courses, so start that now!

College will be a long and fulfilling journey – it's worth getting ready for right away!