FAFSA changes coming...

[MudQueen22]

there is a change that could help students like your niece-


"The criteria for independent student status will include situations in which the student is unable to contact their parents or where contact with the parents poses a risk to the student, such as human trafficking, refugee or asylum status, parental abandonment or estrangement and student or parent incarceration."

Thank you for sharing this. I have looked it up also, but I'm not positive if financial abandonment equates to parental abandonment in legal terms. (I know I think it equates, but I also know the government doesn't define things the same way I might.) Also, she is completely estranged from one parent; she does have somewhat of a relationship with the other, but that parent is unwilling (claims she is unable) to help her financially.

 

[mjkacmom]

I'm very sorry to hear this. It's so discouraging to know that a student has worked so hard to be at the top of the class, only to still have to come up with tens of thousands in education fees.

I can't recall exactly, but I believe my niece was ranked #9 of over 2,000 students in her graduating class. She had so many obstacles to overcome, and I'm still so proud of her resilience. Even with her high rank, she is still has to scrounge up some money.

When I attended college, I remember it costing me $1,250 for tuition and fees, and then I had books. I remember it felt so hard to have to come up with that money with the tips I made waiting tables, but it was at least doable. Now, even with scholarships, there is no way these kids can pay cash with tips or their grocery store jobs. I feel so sad for them.

My husband attended college in the 80’s, less than $20,000 including housing. The same exact education at the same college cost my daughter $120,000+.

 

[rockawaybeachgirl]

I have a bit of a problem with this--the step-parent isn't otherwise on the hook for a child's expenses in other aspects of life. For example, when child support is calculated, it is only the parent whose income is considered. The income of step-mothers and step-fathers is not considered. Why is it suddenly considered when calculating what a student can/cannot afford for college, particularly considering that the student is technically an adult at this time.

FAFSA is a bit of a sore spot with me for other reasons. I have a niece that has been completely cut off from financial support from both parents. (She has done nothing to deserve this--she just has crappy parents.) In fact, they often want favors from her that cost her money personally. Her grandparents pay for her medical and vehicle insurance (on the vehicle they bought her). Fortunately, she graduated within the top 10% of her class, so most of her tuition, fees, and housing are covered, but not entirely. She works at a grocery store near her campus to help cover her gas and other necessities.
FAFSA forces information on parent income, even though she is essentially independent.

The theory behind custodial step parent income 'counting' is not so much implying that the stepparent should kick in for college per se, but more that the fact that there is a step parent whose income is helping to support a single household, so it frees up income of the bio parent to pay for college. Extreme example, but if a single custodial parent is making $35k a year, and marries someone making $350k a year, it's hard to argue that the stepparent's income contribution to the household doesn't drastically change the bio parent's ability to pay.

As for your niece's situation, it is unfortunate that certain student suffer bc the rules assume parents will kick in first, but if they made it easy to prove undergraduates were 'independent', then parents would play lots of games to maximize financial aid.

 

[MudQueen22]

The theory behind custodial step parent income 'counting' is not so much implying that the stepparent should kick in for college per se, but more that the fact that there is a step parent whose income is helping to support a single household, so it frees up income of the bio parent to pay for college. Extreme example, but if a single custodial parent is making $35k a year, and marries someone making $350k a year, it's hard to argue that the stepparent's income contribution to the household doesn't drastically change the bio parent's ability to pay.

As for your niece's situation, it is unfortunate that certain student suffer bc the rules assume parents will kick in first, but if they made it easy to prove undergraduates were 'independent', then parents would play lots of games to maximize financial aid.

I understand what you're saying. I see the reasoning behind both. I simply disagree that the step-parent's income should be considered, as it is then taking away additional funds from a possibly lower income parent. IMO, it operates a bit like a remarriage penalty.

As for my niece's situation, it seems a bit contradictory to other aspects of our society. If she went into the military, she would be considered enough of an adult to die for her country. If she committed murder, she would be tried as an adult. When she takes out those student loans, she signs as an adult. Yet, she still needs Mommy and Daddy's information to qualify for financial aid.

Personally, I have no problem with there being a cost to attending college, but I do believe it has become predatory over the years. I am from a lower-income, working class family. I was more than able to gain entrance to college, and I became the first person in my family to graduate with a bachelor's degree. I was able to graduate with $0 in student debt. I feel really badly for young people from situations like the one I was in 25 years ago. I hate that they have to choose between college debt with a college degree or another path that keeps them debt-free, particularly when their achievement shows college readiness.

I suspect we may be creating for ourselves an enormous shortage of teachers, nurses, social workers, and many others who have traditionally had a college education, but whose pay would never warrant large education expenditures.

 

[irazabul]

Does anyone know if there is a threshold of income beyond which you should not expect to get any aid based on the FAFSA? I just want to know if its even worth sending in what is pretty personal information if we won't get any aid anyway.

 

[mi*vida*loca]

FAFSA changes

New terms, new guidelines, new money caps. There are some major overhauls ahead, including children in divorced households: The new legislation will require the parent who provides the most financial support to complete the FAFSA, instead of the custodial parent.

Wouldn’t the custodial parent provide the most financial support in most situations. I mean child support doesn’t even begin to cover half of our expenses and I get a good amount. Unless you are still a SAHM and your ex is paying for everything I don’t see how non custodial parents would provide most of the financial support.

 

[havaneselover]

Wouldn’t the custodial parent provide the most financial support in most situations. I mean child support doesn’t even begin to cover half of our expenses and I get a good amount. Unless you are still a SAHM and your ex is paying for everything I don’t see how non custodial parents would provide most of the financial support.

If a child spends 190 days with you and 175 with your ex, you are custodial. But if you basically both cover day-to-day expenses but he pays health insurance, he would provide most of the support. Now how the heck they would get to the bottom of that is beyond me.

 

[havaneselover]

I find this all fascinating. As a single mom (and custodial parent), I encouraged dd to apply to school that only took FAFSA or didn't require the non-custodial parent to fill out CSS. DD applied to engineering programs and all six schools she applied to are public so that helped. And honestly she may not get any need based aid anyway which I'm okay with. (we'll find out in the next few months). There are always winners and losers when they make policy changes (like the 2017 tax cuts which were pretty lousy for those of us who claimed head of household status and itemized) and I certainly understand a lot of the frustration. And I agree that higher education costs are out of control.

 

[OrangeBirdGirl]

Thanks. Glad those days are behind me, although I navigated the form without issue.
Just remember my mom 45+ years ago looking at the form and saying "that' information isnone of their business, I'll pay your tuition myself"

My parents said the same thing. It baffles me that my friends just openly tell their kids their annual wage. I asked why they'd do that and they said they want them to have realistic expectations as to what people make.

 

[rockawaybeachgirl]

Does anyone know if there is a threshold of income beyond which you should not expect to get any aid based on the FAFSA? I just want to know if its even worth sending in what is pretty personal information if we won't get any aid anyway.

Just to be clear: the FAFSA only indicates what money you may get from the Federal Government in the form of Pell grants or subsidized loans. It does not take into account state or school specific need based aid, or merit scholarships. You can run an example FAFSA (without actually submitting it) and it will give you what's called an 'EFC - Expected Family Contribution'. If this is more than about $6000, then your ability to get a Pell grant is unlikely. As for federal loans, any income level at all is entitled to the federal amounts ($5500/6500/7500/7500 for each year) as long as you fill the form out, but your EFC determines how much of the loan is subsidized by the government vs unsubsidized. I'm going to guess the income thresholds are much lower than you'd expect, however.

What may be more generous are the school-specific income levels, so make sure to check that too.

 

[rockawaybeachgirl]

Quick general guideline on EFC: if you don't have an 'unusual situation' (divorced parents, business or farm owner, etc) then the EFC is usually 25-30% of your annual gross income. If you have an unusual situation, then it could be way, way off.....

 

[irazabul]

Just to be clear: the FAFSA only indicates what money you may get from the Federal Government in the form of Pell grants or subsidized loans. It does not take into account state or school specific need based aid, or merit scholarships. You can run an example FAFSA (without actually submitting it) and it will give you what's called an 'EFC - Expected Family Contribution'. If this is more than about $6000, then your ability to get a Pell grant is unlikely. As for federal loans, any income level at all is entitled to the federal amounts ($5500/6500/7500/7500 for each year) as long as you fill the form out, but your EFC determines how much of the loan is subsidized by the government vs unsubsidized. I'm going to guess the income thresholds are much lower than you'd expect, however.

What may be more generous are the school-specific income levels, so make sure to check that too.

Sounds like I shouldn't even bother. We are getting letters of acceptance back, with mainly Merit Based scholarships. I highly doubt we will get anything based on the FAFSA.

 

[rockawaybeachgirl]

Sounds like I shouldn't even bother. We are getting letters of acceptance back, with mainly Merit Based scholarships. I highly doubt we will get anything based on the FAFSA.

Right, but just to be clear - your acceptance letters wouldn't indicate any need-based aid if you haven't done the FAFSA (and another form called the CSS Profile that many schools require). They would only have given merit aid. I, personally, didn't bother with any of the need based forms, but might now fill out the FAFSA for the automatic $5500 since interest rates are currently 0% and will likely be very low for the near future....

 

[irazabul]

Right, but just to be clear - your acceptance letters wouldn't indicate any need-based aid if you haven't done the FAFSA (and another form called the CSS Profile that many schools require). They would only have given merit aid. I, personally, didn't bother with any of the need based forms, but might now fill out the FAFSA for the automatic $5500 since interest rates are currently 0% and will likely be very low for the near future....

Sorry, you are saying that EVERYONE qualifies for a $5500 no interest loan (assuming the interest rate stays steady) if you fill out the FAFSA?

 

[mjkacmom]

Right, but just to be clear - your acceptance letters wouldn't indicate any need-based aid if you haven't done the FAFSA (and another form called the CSS Profile that many schools require). They would only have given merit aid. I, personally, didn't bother with any of the need based forms, but might now fill out the FAFSA for the automatic $5500 since interest rates are currently 0% and will likely be very low for the near future....

In the spring both of my kids received funding from the cares act even though they were only eligible for the federal loans, fafsa has to be on file.

 

[mjkacmom]

My parents said the same thing. It baffles me that my friends just openly tell their kids their annual wage. I asked why they'd do that and they said they want them to have realistic expectations as to what people make.

We really had no choice while they were filling out forms for college and scholarships.

 

[rockawaybeachgirl]

Sorry, you are saying that EVERYONE qualifies for a $5500 no interest loan (assuming the interest rate stays steady) if you fill out the FAFSA?

Yes. It's an automatic entitlement. If it's unsubsidized, then interest will accrue while in school (assuming there is an interest rate).

 

[irazabul]

Yes. It's an automatic entitlement. If it's unsubsidized, then interest will accrue while in school (assuming there is an interest rate).

Thanks. Will we be notified after filling out the FAFSA or is there something we need to do to get the 5500 loan entitlement?

 

[barkley]

Sounds like I shouldn't even bother. We are getting letters of acceptance back, with mainly Merit Based scholarships. I highly doubt we will get anything based on the FAFSA.

check with the schools to see if fafsa is required for any of the other scholarships. my dd got a couple of very nice scholarships that were in no way income based but they did require a fafsa be completed and on file to be considered for them. we also found that several of the private scholarships (outside the university) that while merit based still wanted proof a fafsa had been completed.

 

[tzolkin]

My parents said the same thing. It baffles me that my friends just openly tell their kids their annual wage. I asked why they'd do that and they said they want them to have realistic expectations as to what people make.

Just curious what’s so crazy about your kids (or other people) knowing how much money you make? Why does it need to be a secret?

As for the FAFSA, I used to do my parents taxes for them so I could have the info to complete the forms. So I had access to everything. Even after I graduated, I continued filling out FAFSAs for my younger siblings.