FAFSA changes coming...

[mjkacmom]

I hated the whole FAFSA process. Apparently the government thought it was perfectly fine for us to spend 2/3 of our income on tuition. I guess I had a different definition of financial "aid", I was thinking more scholarships/grants, not loans. Also, my kids did not qualify for on campus jobs.

We will have 3 in college next year, just loans. Unfortunately we expected to have major work done on our kitchen, driveway and front stairs replaced, house painted, which all got delayed, and I have than money parked in our bank account. It should’ve been gone a year ago (our painter has a long list, our contractor says materials are double in cost, appliances take forever, so to wait).

 

[MrsPete]

If you go to a large university, true. But there is a difference. In a modern age you still are in "contact" with the extended high school circle via social media.

I can believe this ... to some extent, but I still think high school students overestimate the contact they'll have with high school acquaintances once they reach college. The fish-bowl-situation that is high school doesn't continue on once they've graduated.

The sheer luxury of today's college campuses astound me.

Agree, and this has added to the cost of college.

Yes, my girls' college food was vastly better than mine. Their meal plan could pay for pizza delivery, Starbucks and several other name-brand fast food places, and their cafeteria was actually quite nice.

My nephew lives in the same dorms I lived in three decades ago, but what used to be double rooms are ALL now singles.

... AND it is to be filled out by the student NOT the parent.

Are you saying this is how it SHOULD be? 'Cause it's not how it is, and the vast majority of 18-22 year old college students are financially dependent upon their parents -- even in difficult situations like the divorce situations you mentioned.

 

[rockawaybeachgirl]

I hated the whole FAFSA process. Apparently the government thought it was perfectly fine for us to spend 2/3 of our income on tuition. I guess I had a different definition of financial "aid", I was thinking more scholarships/grants, not loans. Also, my kids did not qualify for on campus jobs.

But the government doesn't 'think' that. They expect that parents will (1) pay out of past income (savings), current income, and future income (loans) or (2) choose a cheaper option, either by chasing merit, living at home, or picking a relatively cheap school. All the FAFSA is is a form that determines whether a student is eligible for the very limited government grants and programs that are designed to subsidize lowest income families to get a basic college education. The max Pell grant is not funding a live-away experience at any University. Frankly I'd be annoyed if the government WAS doing that.

We didn't bother with the FAFSA as I knew there was no chance of need based aid. The schools my D21 applied to either were cheap enough to afford without merit (SUNYs) or didn't require a FAFSA for merit. This was something I checked on in advance.

 

[mjkacmom]

But the government doesn't 'think' that. They expect that parents will (1) pay out of past income (savings), current income, and future income (loans) or (2) choose a cheaper option, either by chasing merit, living at home, or picking a relatively cheap school. All the FAFSA is is a form that determines whether a student is eligible for the very limited government grants and programs that are designed to subsidize lowest income families to get a basic college education. The max Pell grant is not funding a live-away experience at any University. Frankly I'd be annoyed if the government WAS doing that.

We didn't bother with the FAFSA as I knew there was no chance of need based aid. The schools my D21 applied to either were cheap enough to afford without merit (SUNYs) or didn't require a FAFSA for merit. This was something I checked on in advance.

OT, but my daughter was just accepted at SUNY Binghamton with a presidential scholarship, bringing the cost lower than our in state. She researched the colleges she applied to, I know nothing about SUNY schools.

 

[Theta]

We didn't bother with the FAFSA as I knew there was no chance of need based aid. The schools my D21 applied to either were cheap enough to afford without merit (SUNYs) or didn't require a FAFSA for merit. This was something I checked on in advance.

We never completed FAFSA either, because we knew our daughter wouldn't get any aid at instate public school.

She is now applying to grad school. Her friends are telling her to complete FAFSA to be eligible for grad school awards. We are not planning to declare her a dependent for 2020. Does this make a difference? Anyone have experience with this?

 

[yeahdisney]

Theta - DD applied for her masters.

FAFSA made her declare she was independent. For masters.

Her school requires her to apply for FAFSA to be considered any scholarships. You are automatically considered for any scholarship that you are eligible.

They had 50 women in civil engineering program. I think she got a $37 scholarship her freshman year. Along with small others.

Her sophomore year she did not apply for any scholarships cause they said for juniors-she told me after they were due - I shared they were for her Junior year....


During her junior year the school sent her two independent scholarships to apply to for senior year. She got good money, her senior year. Cause?? Peeps didn’t complete FAFSA or try for those scholarships or maybe she is a a STAR

She will find out late March if she gets anything for masters. 4 kids were picked for an accelerated masters program.

 

[rockawaybeachgirl]

We never completed FAFSA either, because we knew our daughter wouldn't get any aid at instate public school.

She is now applying to grad school. Her friends are telling her to complete FAFSA to be eligible for grad school awards. We are not planning to declare her a dependent for 2020. Does this make a difference? Anyone have experience with this?

Graduate students are considered independent by definition, no matter their age or tax status. They can get $20k in graduate federal loans per year. I'm a CPA, but I'm actually in law school now (at 47!) and I took out the max loan this year since it is at 0% and likely to stay that way for a good while.

 

[havaneselover]

So far for the $41k in-state public school my EFC was $40k (used CSS including custodial parent) and for the $30,200 in-state public school my EFC was $30,400 (only my income - FAFSA). Still waiting on DD's first choice which is a $50k out-of-state public school (uses CSS but only custodial parent so I'm hoping she gets a little aid).

 

[punkin]

Graduate students are considered independent by definition, no matter their age or tax status. They can get $20k in graduate federal loans per year. I'm a CPA, but I'm actually in law school now (at 47!) and I took out the max loan this year since it is at 0% and likely to stay that way for a good while.

Is it at 0%? I thought it was more...I have a DD applying for grad school right now. She'll need more than the $20k though

 

[rockawaybeachgirl]

Is it at 0%? I thought it was more...I have a DD applying for grad school right now. She'll need more than the $20k though

Yes, the COVID forbearance applies to graduate loans - as long as they are the federal loans (not private ones). The rate will stay at 0% through at least September 2021:
Automatic Temporary 0% Interest and Administrative Forbearance as a Result of the COVID-19 Emergency
To provide relief to student loan borrowers during the COVID-19 emergency, interest is being temporarily set at 0% on federal student loans. In addition, federal student loan borrowers were automatically placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payments. This 0% interest and suspension of payments will last from March 13, 2020, through at least Sept. 30, 2021, but you can still make payments if you choose.

Also, just to clarify - the $20k limit is the federal graduate student loan limit. Graduate students have access to PLUS loans up to the amount of the school's stated Cost of Attendance, which is published on each school's website. The COA is tuition, room and board allowance, book estimate, etc. For example, even though I live in my own house with my husband and kids, paying a mortgage as I have for many years, I could have borrowed up to $70k-ish as they allow my to 'count' living expenses as part of the Cost of Attendance. Not saying it's wise to borrow that much, but those are the rules. That's generally how people accumulate the crazy loan totals we see in the media.

 

[rockawaybeachgirl]

Is it at 0%? I thought it was more...I have a DD applying for grad school right now. She'll need more than the $20k though

Yes, the COVID forbearance applies to graduate loans - as long as they are the federal loans (not private ones). The rate will stay at 0% through at least September 2021:
Automatic Temporary 0% Interest and Administrative Forbearance as a Result of the COVID-19 Emergency
To provide relief to student loan borrowers during the COVID-19 emergency, interest is being temporarily set at 0% on federal student loans. In addition, federal student loan borrowers were automatically placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payments. This 0% interest and suspension of payments will last from March 13, 2020, through at least Sept. 30, 2021, but you can still make payments if you choose.

 

[barbarabini]

Sooo....anyone know of any jobs for high school seniors that pay appx 35K a year? I didn't think so. A high school senior has absolutely no chance of making a meaningful contribution to their college education. I just did the FAFSA for the first time. I will never do it again. It was an absolute waste of time for us. Rule of thumb: appx 30% of your gross for tuition. Anything after, you go get private loans. When you hear people say, no one really pays full price, that would not be true. There are a few of us out their paying full freight. Sorry im just venting... and figure out how to come up with an extra 25K a year without taking loans.

 

[TwoMisfits]

Sooo....anyone know of any jobs for high school seniors that pay appx 35K a year? I didn't think so. A high school senior has absolutely no chance of making a meaningful contribution to their college education. I just did the FAFSA for the first time. I will never do it again. It was an absolute waste of time for us. Rule of thumb: appx 30% of your gross for tuition. Anything after, you go get private loans. When you hear people say, no one really pays full price, that would not be true. There are a few of us out their paying full freight. Sorry im just venting... and figure out how to come up with an extra 25K a year without taking loans.

Yeah, we also won't do it again b/c our "planned" school is "too cheap" to matter if we live at home (we don't have to put in $35K, but when it's $16K/year all in for tuition and fees and lessons living at home, there's no point b/c no way are we ever getting any money at that family contribution level)...

Although this whole process has convinced us we are NOT moving til the last kid is through undergrad - saving $25K/year on room and board (aka the going rate) pretty much buys a condo per kid once they start out (if I had that extra $100K/kid)...

Yeah, I'm sure $100K/kid would help them grow a little independence faster, but that's very possible for WAY less once they are no longer our dependent...

 

[dreamer17555]

FAFSA formula assumes that you have been making close to your current salary and aggressively saving for college. There are many things that we often feel we cannot go without (guilty as well, especially with Disney trips vs savings for college) when in reality over the years there are lots of ways to save. Many (including myself) have not saved the way we should have.

 

[MrsPete]

Sooo....anyone know of any jobs for high school seniors that pay appx 35K a year? I didn't think so. A high school senior has absolutely no chance of making a meaningful contribution to their college education.

Putting aside child models and actors, a high school senior isn't going to bring a lot of money to the table, but he or she CAN make a difference in the cost of college in several ways:

- Take AP classes and/or dual enrollment in community college classes, which will build up college credits /increase the chances of graduating on time. Not every student can "make it" in AP classes, but any college-bound student should be able to handle the dual enrollment classes.
- Earn solid grades, search out opportunities for leadership and service ... which will increase their chances for scholarships.
- Choose an affordable college.
- Accept that a dorm room isn't luxurious, but it is cheaper than an off-campus apartment (which must be furnished and paid for 12 months of the year). Cheaper still, depending upon where you live, living at home is the cheapest option of all.
- Look for ways to cut living costs; for example, having no car on campus is a money saver.
- Make a plan for graduating in four years (a surprising number of students don't really plan -- and colleges don't fuss about this).
- Look into part-time military service -- Reserves or Guard.

 

[deserrai]

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.

Wow! Do we share a niece? I have one with almost the exact same situation. Not fair at all that her financial aid depends on her "parents" income when they will not be providing anything at all.

 

[mjkacmom]

Putting aside child models and actors, a high school senior isn't going to bring a lot of money to the table, but he or she CAN make a difference in the cost of college in several ways:

- Take AP classes and/or dual enrollment in community college classes, which will build up college credits /increase the chances of graduating on time. Not every student can "make it" in AP classes, but any college-bound student should be able to handle the dual enrollment classes.
- Earn solid grades, search out opportunities for leadership and service ... which will increase their chances for scholarships.
- Choose an affordable college.
- Accept that a dorm room isn't luxurious, but it is cheaper than an off-campus apartment (which must be furnished and paid for 12 months of the year). Cheaper still, depending upon where you live, living at home is the cheapest option of all.
- Look for ways to cut living costs; for example, having no car on campus is a money saver.
- Make a plan for graduating in four years (a surprising number of students don't really plan -- and colleges don't fuss about this).
- Look into part-time military service -- Reserves or Guard.

But it still costs a lot. In state is $30,000, my kids who went that route moved off campus to save money it’s been my experience that 12 months of rent without a meal plan is still thousands less than dorm with meal plan, even the lowest. My 19 year old started with 30 credits from AP/dual enrollment so will graduate in 3 years, OOS with highest merit it is still over $30,000 a year, none of my kids even owned cars in college (which limits job opportunities, my 19 year old works as a cashier at a pizzeria across from her apartment because she can walk). My 2 oldest graduated a semester early, but my oldest spent an extra year getting her masters so she could take the CPA exams. I think my seniors will end up in state, although my daughter did get enough merit from an OOS university bringing the cost a little below in state.

 

[barkley]

- Accept that a dorm room isn't luxurious, but it is cheaper than an off-campus apartment (which must be furnished and paid for 12 months of the year). Cheaper still, depending upon where you live, living at home is the cheapest option of all.

definitely agree that if within reasonable commute that living at home is less expensive but w/ regards to off campus apartments-there can be a HUGE difference between the ones that are marketed to the college students vs. traditional residents. the college town(s) closest to us have over priced/over regional market rate apartments that are largely rented to either (1) kids who have no care/no cost consideration, and (2) one year only residents who are newbies to the area/rental game and don't look at any places except those that come up first under their google search/pay very good money to be highly advertised by their nearby university. if a bit more time was spent researching students could find identical to better, in some cases fully furnished apartments that go for MUCH less than the most inexpensive of dorms (saving even more if you eliminate the cost of the mandatory meal plan the dorms require). out of curiosity i just looked at what the dorms are charging for a shared room w/a shared bathroom at the u closest to us-a fully furnished 2 (full suite/private bathrooms) apartment w/ a full kitchen, washer & dryer in the apartment, all utilities and parking included (and a bus that stops right outside every 30 minutes to go to the u and return) runs $1400 per year less (and you don't have to move out during winter break like at the dorms, are getting 12 months of housing vs. aprox 8 1/2). just like the dorms they arrange pairings of roommates. a single dorm room runs more than my oldest is paying less than a mile from campus (again bus service) for a one b/r apartment with utilities, w&d as well as a private garage for her car.

i know it's not the same in all areas but it does pay to shop around.

 

[MrsPete]

... it’s been my experience that 12 months of rent without a meal plan is still thousands less than dorm with meal plan, even the lowest.

My experience was just the opposite. The meal plan was more expensive than buying /cooking, but those savings were entirely wiped out (and more) by the much higher cost of the apartment.

... but w/ regards to off campus apartments-there can be a HUGE difference between the ones that are marketed to the college students vs. traditional residents. the college town(s) closest to us have over priced/over regional market rate apartments that are largely rented to either (1) kids who have no care/no cost consideration, and (2) one year only residents who are newbies to the area/rental game and don't look at any places except those that come up first under their google search/pay very good money to be highly advertised by their nearby university.

This falls under the heading of, Don't be a smuck.

 

[mjkacmom]

My experience was just the opposite. The meal plan was more expensive than buying /cooking, but those savings were entirely wiped out (and more) by the much higher cost of the apartment.
This falls under the heading of, Don't be a smuck.

My daughter‘s rent is $10,000 a year, 6 bedrooms, 5 bathrooms, room/board is almost $15,000, lowest meal plan is over $6000 a year (She was in a forced triple freshman year, no dressers because they wouldn’t fit).