FAFSA changes coming...

[QueenIsabella]

We filled out the FAFSA, mostly for potential scholarship opportunities, but also for potential work-study. Our kids won't be getting need-based aid. I'm okay with that, but it would be nice for them to be considered for merit-based.

 

[MudQueen22]

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.

I think some of this is cultural; it's often considered in poor taste for one to share information about personal finances with others.

It's also an issue of provoking others to jealousy and having to deal with the issues surrounding others' jealousy.

Ten years ago, I relocated to be closer to my family. As a result, I took an enormous pay cut. Prior to that, I taught in a well-funded school district that paid among the highest teacher salaries in my state. I had relatives that figured out that my income was high, and they often voiced their disapproval that I should be paid so much. (Since I did not work in the hot sun doing manual labor, they did not believe I should command a higher annual income than they received.) I suspect the reluctance of most people to share their income information with others is to avoid dealing with any judgement. (The reverse could also be true.)

 

[rockawaybeachgirl]

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

Ad I understand it, the loan will be applied to the bill from the school automatically. If there is anything left over, it will be refunded to you.

 

[rockawaybeachgirl]

We filled out the FAFSA, mostly for potential scholarship opportunities, but also for potential work-study. Our kids won't be getting need-based aid. I'm okay with that, but it would be nice for them to be considered for merit-based.

As someone noted, this is school-specific. My daughter received merit scholarships from every school she applied to other than the SUNY (state university of NY, very low cost) and we didn't fill out the FAFSA.

 

[WVMomof3]

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.

I wondered the same thing. We have an annual family meeting where we discuss our years finances. How much we made, where we spent it, what we want to spend in future etc. How are kids supposed to learn about finances and budgeting if you don't discuss it.

 

[WVMomof3]

I think some of this is cultural; it's often considered in poor taste for one to share information about personal finances with others.

It's also an issue of provoking others to jealousy and having to deal with the issues surrounding others' jealousy.

Ten years ago, I relocated to be closer to my family. As a result, I took an enormous pay cut. Prior to that, I taught in a well-funded school district that paid among the highest teacher salaries in my state. I had relatives that figured out that my income was high, and they often voiced their disapproval that I should be paid so much. (Since I did not work in the hot sun doing manual labor, they did not believe I should command a higher annual income than they received.) I suspect the reluctance of most people to share their income information with others is to avoid dealing with any judgement. (The reverse could also be true.)

I don't think you need to discuss it with extended family members, but your kids are directly affected by what you make. It is a teaching tool for you to discuss budgeting and finances. Also being offended by filling out the FAFSA makes zero sense. If you do your taxes you are sharing what you make with others. How is the FAFSA different than your taxes. To each their own I guess.

 

[MudQueen22]

I don't think you need to discuss it with extended family members, but your kids are directly affected by what you make. It is a teaching tool for you to discuss budgeting and finances. Also being offended by filling out the FAFSA makes zero sense. If you do your taxes you are sharing what you make with others. How is the FAFSA different than your taxes. To each their own I guess.

I don't really disagree with you; I intend to fill out the FAFSA for my own children and help them as much as I can.

I'm simply explaining why some people are so set against doing so.

 

[WVMomof3]

We filled out the FAFSA, mostly for potential scholarship opportunities, but also for potential work-study. Our kids won't be getting need-based aid. I'm okay with that, but it would be nice for them to be considered for merit-based.

One year we had to adjust our FAFSA, I don't remember why, but DD was allowed to keep her loans but her work study disappeared. Makes zero sense to me. She would have much rather a paying job than loans. Her campus really prioritized work study for campus jobs so she was bummed to have that go away and lose out on potential jobs.

 

[havaneselover]

One year we had to adjust our FAFSA, I don't remember why, but DD was allowed to keep her loans but her work study disappeared. Makes zero sense to me. She would have much rather a paying job than loans. Her campus really prioritized work study for campus jobs so she was bummed to have that go away and lose out on potential jobs.

I've probably made a complete mess of mine because my parents have some money in UGMAs for the kids (which reduces aid 3x more than 529s). If dd stayed in state, I was just going to leave the money as is because I figured she wouldn't get aid anyway. But now it looks like she's not staying in state (though we still may not get aid which is fine), I'm converting those accounts to 529s just in case. I'm sort of over this and I figure expecting she'll get nothing is the only way to avoid disappointment

And I'm with you about being open with kids about finances and income. It's super tricky when your divorced unfortunately because you don't want what the kids know being passed on and used against you

 

[barkley]

Ad I understand it, the loan will be applied to the bill from the school automatically. If there is anything left over, it will be refunded to you.

if a student is eligible to loans they will receive an 'award letter' from their college and they have to accept or decline each individual loan. with some there's a process where the student has to go on-line and do (imho a severely lacking) short tutorial on the implications of taking out student loans.

it's important to look at what type of student loans are being offered in an award letter. there is a HUGE difference between subsidized/unsubsidized, plus loans and private ones offered through individual colleges.

if loans are awarded they are not automatically applied-they have to be formaly accepted with the student (and depending on the type of loan-sometimes the parent(s)) signing a loan agreement just like any bank loan.

 

[bdcp]

FAFSA is a mess. At one point, for two years we had two in college, one in state and one in private (one in private got a little money from the school, but not that much). I filled out FAFSA every year but all we were ever offered was small loans, which we could easily get loans on our own. FAFSA told us we could afford to pay some huge amount for our boys school. I guess if we didn't have a house payment we could have swung it, which makes no sense. Our boys have been out of college for more than 10 years now, but most people don't benefit much if at all from filling it out. And, 529's were introduced when our boys were in 8th and 10th grade. We could have paid in over 10K each to start one, but at that point, it made no sense and we didn't have that much cash just sitting around. Nowadays, I would have started a 529 at birth, but that wasn't an option.

 

[OrangeBirdGirl]

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.

I guess just personal preference. There's no reason I need to know anyone else's household income, doesn't matter about anything in my life.

 

[mjkacmom]

I guess just personal preference. There's no reason I need to know anyone else's household income, doesn't matter about anything in my life.

But there are people who need to know others income, financial advisors, tax preparers, financial aid offices...

 

[barkley]

we've never felt the need to share the specifics of our income with our (now) adult children. that's not to say we didn't/still do teach them about finances and budgeting. i filled out the fafsa for them and sure, they could have gone online and looked at the numbers but i don't think either did. we discuss finances and budgeting more in generalized terms with them-esp. when it comes to evaluating the dollar value of the employee benefits potential employers are offering vs. just comparing wages for identical jobs.

for that matter, as former public employees our salaries (now pensions) are public records that are easily accessible on the internet. not that i'm inclined to do so but i could find out the bulk of my neighbor's salaries this way b/c they are largely teachers, in medical jobs (public hospitals) or in some other aspect of government employment.

 

[barkley]

But there are people who need to know others income, financial advisors, tax preparers, financial aid offices...

but those are all voluntary 'conditional' situations. no one is forced by law to use a financial advisor, a tax perparer or even apply for financial aid. if they choose to do one of these then a condition of it happening, on the part of the person choosing to do so, is that they disclose their income.

 

[crisi]

I believe there are a few schools who won't process your application without a FAFSA - even if you don't need aid. They just assume you haven't gotten in all your paperwork yet, and if they are a need aware school, they need to know if you'll be paying sticker price or need aid to make admissions decisions. We filled one out as part of the application process Senior year, and haven't done one since as we don't qualify for need based aid.

 

[rockawaybeachgirl]

I believe there are a few schools who won't process your application without a FAFSA - even if you don't need aid. They just assume you haven't gotten in all your paperwork yet, and if they are a need aware school, they need to know if you'll be paying sticker price or need aid to make admissions decisions. We filled one out as part of the application process Senior year, and haven't done one since as we don't qualify for need based aid.

I'm not sure that's true. What If you know you won't qualify, and don't want to share your personal info? The college won't consider your kid as a full pay admit?
Now, there are a few schools that require a FAFSA for merit aid. But (after stepD and D applying with no FAFSAs) I've never heard that they won't process an admissions decision. The departments work independently.

 

[crisi]

We knew we wouldn't qualify, but at least one school said "all paperwork, including FAFSA, must be turned in before we review applications." And in a need aware school, the two departments don't work independently, that's the definition of need aware.

 

[DL1WDW2]

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."

Has she applied for legal emancipation minor status?
I was attending university and received a tuition bill for out of state.
I had remained in home state to attend college, work self support and live with my sister when my parents moved to California After my high school graduation. I graduated at age of 17 . I applied for legal emancipation to avoid out of state Tuition successfully.

 

[tzolkin]

I guess just personal preference. There's no reason I need to know anyone else's household income, doesn't matter about anything in my life.

I get that it's a personal preference to not want to share certain information about yourself. (People have that preference in many different areas-- personal life, family, background, etc) I certainly don't go around discussing with random people how much money we make.

I guess I just don't understand being so dead set on keeping it a secret that someone would be horrified by the idea of sharing financial information with their kids or would refuse to fill out FAFSA for college (even when they may qualify for financial aid).