Do not assume your family is ineligible for financial
aid—every family should complete and submit the FAFSA. The FAFSA
takes into account financial information from the previous
calendar year. Families with students entering school in 2003
will submit 2002 financials. Federal financial aid is not based
on home equity or retirement funds. A portion of parent savings
and investments are excluded from Expected Family Contribution
(EFC) calculations. When more than one student is in college at
the same time (including graduate school), family resources are
assumed to be split among current students, often making the
contribution expected for each individual student lower.
Shifting Assets
Because 35 percent of student personal savings and investments
are expected to be contributed toward their education (compared
to less than 6 percent of parent assets), some parents choose to
shift assets in their children's name to their own name. If you
are considering this option, use caution. Always check with a
financial advisor before shifting any assets and be very careful
if advised to shift any assets out of your immediate family.
Complete the FAFSA ASAP
Complete the FAFSA as soon as possible after January 1st of the
year the student plans to attend school. Be very mindful of all
deadlines. It's a good idea to create a checklist of when all
applications and forms are due.
Don't Wait to File
Apply for financial aid before the student is accepted to the
school of his or her choice. Start the process at least 6 ot 9
months before classes begin. Start earlier if school deadlines
require that. Also, estimate income tax figures carefully when
completing the FAFSA. You will have the opportunity to amend
these figures when you receive the Student Aid Report (SAR).
On the FAFSA, You Will
Need:
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federal, state, and local tax returns (or
estimates) |
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W-2 forms |
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student's driver license (if
applicable) |
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untaxed income records |
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bank statements |
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business records |
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records of stocks, bonds, mutual funds, and
other types of investments (including CDs and money-market
accounts) |
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social security numbers |
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farm records
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And don't forget...
- Use a photocopy of the FAFSA
as a draft; use an original for the final version.
- Double-check all entries,
including the social security number.
- Print neatly and carefully,
using a No. 2 pencil.
- Obtain the Department of
Education school code (or Title IV code) from each school to
which the student is applying.
- Do not leave any blanks. Enter
a zero if the item is not applicable.
- Do not use White-Out.� Draw a
single line through any errors and initial the
corrections.
- Keep copies of everything you
send.
- Mail the FAFSA first class and
ask for a postal receipt.
- If there are any unusual
circumstances you believe are not reflected in the FAFSA, send
a letter explaining your situation to each financial aid office
of the schools to which the student is applying.
- If you're sure that your
family is not required to file a 1040 tax form, fill in either
oval "A" or "C" for question 53 and/or question 65 on the
FAFSA. This indicates your family is eligible to file either a
1040A or 1040EZ. If your family is eligible to file either form
1040A or 1040EZ, it is recommended that you do so. Indicating
another form on the FAFSA may negatively affect eligibility for
certain types of financial aid.
- Most importantly, do not forget to sign the
FAFSA!
More...
If you have any questions about the FAFSA, you may call the
Federal Student Aid Information center at 1-800-4-FED-AID.
