Fafsa

[IDoDis]

We found that the bank account balance made a difference in our EFC as well. The first year I filled out the FAFSA we had already received our income tax refund *and* my husband's yearly bonus and had deposited both of those checks (the total of those 2 things equaled about 20% of what my husband's gross salary was at that time). It didn't occur to me that it would make a difference in the FAFSA EFC. The next year, I filled out FAFSA before those checks were deposited and there was definitely a difference in the EFC. The amount they felt we could contribute was still a joke, but not having those deposits in the bank before filing at least made it possible for our son to get better loan rates/terms and qualify for an on campus job that year.

Not only will parents' assets including money in checking and savings on the day you file affect your EFC, but your child's assets increase the student contribution portion, too -- by a much greater amount than parent bank assets. For example, if your college (or college bound) child has $5k in the bank, his/her expected contribution for next year's college expenses is 20% of that 5k or $1000. This lowers your financial aid, if eligible.

I fill out a FAFSA for DD because her merit scholarship requires it (many do). DD doesn't qualify for any grants or work study, but I still have to fill out the FAFSA.

 

[coinkc]

Do we use the same pin numbers each year or do we need to re-apply for new ones this year?

 

[disneychrista]

Do we use the same pin numbers each year or do we need to re-apply for new ones this year?

The same one.

 

[Happy Snowman]

We don't get financial aid either, but the loan rates are pretty dang good so we "use" that money...aka, put it in the bank, for future use for grad school or whatever. If they don't need it, the money is there, with interest, to pay back.

 

[Minnie_me]

I have to do this soon as well. I'm dreading it so much, because I am not very good with things like this (taxes, loans, mortgages, etc.).

So, that being said, here's my dumb question. I am taking my DD on a trip to Universal/WDW as her graduation gift, and have a savings account designated for that vacation. Reading the previous posts, it makes me wonder if that's wise??? Will having all of that "extra" money in the bank affect her financial aid??? If so, what do I do with it? lol!

 

[disneychrista]

Will having all of that "extra" money in the bank affect her financial aid??? If so, what do I do with it? lol!

They do not care where the money is. In the bank or in cash in your dresser drawer, they want to know about it. But yes, having extra money/cash will effect

 

[tvguy]

I have to do this soon as well. I'm dreading it so much, because I am not very good with things like this (taxes, loans, mortgages, etc.).

So, that being said, here's my dumb question. I am taking my DD on a trip to Universal/WDW as her graduation gift, and have a savings account designated for that vacation. Reading the previous posts, it makes me wonder if that's wise??? Will having all of that "extra" money in the bank affect her financial aid??? If so, what do I do with it? lol!

Well, if you are planning a REALLY expensive trip it could have a very small impact..........I would imagine a trip like that would cost less than $10,000 so I doubt that little money would have any impact.
What they really look at is your gross income. That can be quite alarming to some folks because some things like contributions to traditional retirement plans, like IRAS and 401ks are deductable on your taxes, but FAFSA makes you add that money back into your income as something that could be spent on your child's education instead.
A lot of folks consider smart phones, cable TV, gym memberships, DVC as necessities.....FAFSA sees all those things as money that can be redirected to education costs.

 

[tvguy]

We found that the bank account balance made a difference in our EFC as well. The first year I filled out the FAFSA we had already received our income tax refund *and* my husband's yearly bonus and had deposited both of those checks (the total of those 2 things equaled about 20% of what my husband's gross salary was at that time). It didn't occur to me that it would make a difference in the FAFSA EFC. The next year, I filled out FAFSA before those checks were deposited and there was definitely a difference in the EFC. The amount they felt we could contribute was still a joke, but not having those deposits in the bank before filing at least made it possible for our son to get better loan rates/terms and qualify for an on campus job that year.

My mom passed away in 2013, with the biggest part of my inheritance coming from the sale of her house. My savings balance went up 10 fold from the year before (basically from nearly nothing, to something) . My income stayed about the same. My EFC went from $27,500 to $24,000. I don't consider that money having much of an impact.

 

[Minnie_me]

Well, if you are planning a REALLY expensive trip it could have a very small impact..........I would imagine a trip like that would cost less than $10,000 so I doubt that little money would have any impact.
What they really look at is your gross income. That can be quite alarming to some folks because some things like contributions to traditional retirement plans, like IRAS and 401ks are deductable on your taxes, but FAFSA makes you add that money back into your income as something that could be spent on your child's education instead.
A lot of folks consider smart phones, cable TV, gym memberships, DVC as necessities.....FAFSA sees all those things as money that can be redirected to education

Thanks! It's only around $4,000......so hopefully it won't matter that much? Here's another question for you:

I am divorced. My daughters spend 95% of their time with me (maybe even more!). They spend maybe 1 night a month with their father. Because of child support, my income is more than his. A financial planner advised us to indicate on the FAFSA form that our daughter resides with him, so that they will look at his income over mine, and she would be more likely to receive more aid that way.

That makes me nervous --- isn't that cheating? I don't like to lie.

 

[tvguy]

Thanks! It's only around $4,000......so hopefully it won't matter that much? Here's another question for you:

I am divorced. My daughters spend 95% of their time with me (maybe even more!). They spend maybe 1 night a month with their father. Because of child support, my income is more than his. A financial planner advised us to indicate on the FAFSA form that our daughter resides with him, so that they will look at his income over mine, and she would be more likely to receive more aid that way.

That makes me nervous --- isn't that cheating? I don't like to lie.

I think you need expert advice I certainly can't provide. Because as I recall, you have to report BOTH your income and your ex's income. Your EFC will be a percentage of your combined gross incomes.

 

[Asherry25]

Thanks! It's only around $4,000......so hopefully it won't matter that much? Here's another question for you:

I am divorced. My daughters spend 95% of their time with me (maybe even more!). They spend maybe 1 night a month with their father. Because of child support, my income is more than his. A financial planner advised us to indicate on the FAFSA form that our daughter resides with him, so that they will look at his income over mine, and she would be more likely to receive more aid that way.

That makes me nervous --- isn't that cheating? I don't like to lie.

Yes, it is cheating and you would be lying.

You would need to report your financials, and those of your husband, if you are remarried.

 

[TinksThree]

Thanks! It's only around $4,000......so hopefully it won't matter that much? Here's another question for you: I am divorced. My daughters spend 95% of their time with me (maybe even more!). They spend maybe 1 night a month with their father. Because of child support, my income is more than his. A financial planner advised us to indicate on the FAFSA form that our daughter resides with him, so that they will look at his income over mine, and she would be more likely to receive more aid that way. That makes me nervous --- isn't that cheating? I don't like to lie.

You apply using the income information for the parent that provides 50% or more of living expenses. If you have remarried, you have to report your income and your spouse's income. There would also be FERPA issues preventing you any access to her financial information if you file under her father. Special documents would need to be signed.

I don't think the $4000 would make a huge difference in your EFC. Not sure where you would fall on the EFC bracket and the school's Cost of Attendance, it may not make any difference since the EFC shows need. The school I work for has a pretty high COA so the savings would have little to no affect unless your AGI is really high.

 

[TinksThree]

Yes, it is cheating and you would be lying. You would need to report your financials, and those of your husband, if you are remarried.

Agree!!

 

[IDoDis]

I think you need expert advice I certainly can't provide. Because as I recall, you have to report BOTH your income and your ex's income. Your EFC will be a percentage of your combined gross incomes.

No, that's incorrect. The parent who the child is with for the highest percentage of the time and/or provides the most financial support is the only one who reports. However, if the reporting parent remarries, then the spouse's income must also be reported

Does child support end when the child turns 18? Typically, yes. Therefore, you could call the school's financial aid office to inform them of this change compared to your total income for the year and they would adjust your FAFSA to show that that money is no longer coming in which could result in increased aid.

Who will be claiming your DD as a dependant on their taxes --you or your ex? If your DD is with you 95% of the time, and you claim her as a dependant on your taxes, you should be the one whose income is reported on the FAFSA. If you get caught lying, you risk your DD not ever getting aid and having to immediately pay back any aid received. Why risk putting her in that situation?

 

[yeahdisney]

Subbing

 

[goofy!]

You better double check that, FAFSA for next year isn't open yet. You might have done one for this year by mistake.



You can't...

OP--sign up for your account today, set your pins, etc. The system goes off-line tomorrow until the 1st while they upload the information for next year. It's wise to get this done ASAP though because some schools are first come/first serve for financial aid. The data capture from the IRS isn't available right away, you have to enter your information as best you can now, put "will file" then file your taxes electronically as soon as you can. It takes about 3 weeks after your taxes have been accepted to be able to do the data capture to verify your information. This just eliminates the need to sent your actual returns to the school if they request that (and they do with 20% of the students or so).

One of the scholarships that DS is applying for closes this month and requires a current FAFSA to be on file. I will do another updated one after the 1st.

 

[tvguy]

No, that's incorrect. The parent who the child is with for the highest percentage of the time and/or provides the most financial support is the only one who reports. However, if the reporting parent remarries, then the spouse's income must also be reported

Does child support end when the child turns 18? Typically, yes. Therefore, you could call the school's financial aid office to inform them of this change compared to your total income for the year and they would adjust your FAFSA to show that that money is no longer coming in which could result in increased aid.

Who will be claiming your DD as a dependant on their taxes --you or your ex? If your DD is with you 95% of the time, and you claim her as a dependant on your taxes, you should be the one whose income is reported on the FAFSA. If you get caught lying, you risk your DD not ever getting aid and having to immediately pay back any aid received. Why risk putting her in that situation?

Which is why i started my reply with "I think you need expert advice I certainly can't provide."


https://studentaid.ed.gov/fafsa/filling-out/parent-info

 

[Happy Snowman]

Thanks! It's only around $4,000......so hopefully it won't matter that much? Here's another question for you:

I am divorced. My daughters spend 95% of their time with me (maybe even more!). They spend maybe 1 night a month with their father. Because of child support, my income is more than his. A financial planner advised us to indicate on the FAFSA form that our daughter resides with him, so that they will look at his income over mine, and she would be more likely to receive more aid that way.

That makes me nervous --- isn't that cheating? I don't like to lie.

As others have said, your planner is wrong.

I think you need expert advice I certainly can't provide. Because as I recall, you have to report BOTH your income and your ex's income. Your EFC will be a percentage of your combined gross incomes.

No, that's incorrect. The parent who the child is with for the highest percentage of the time and/or provides the most financial support is the only one who reports. However, if the reporting parent remarries, then the spouse's income must also be reported

Does child support end when the child turns 18? Typically, yes. Therefore, you could call the school's financial aid office to inform them of this change compared to your total income for the year and they would adjust your FAFSA to show that that money is no longer coming in which could result in increased aid.

Who will be claiming your DD as a dependant on their taxes --you or your ex? If your DD is with you 95% of the time, and you claim her as a dependant on your taxes, you should be the one whose income is reported on the FAFSA. If you get caught lying, you risk your DD not ever getting aid and having to immediately pay back any aid received. Why risk putting her in that situation?

Unless the school requires non-custodial income information. Many do via the CSS.

One of the scholarships that DS is applying for closes this month and requires a current FAFSA to be on file. I will do another updated one after the 1st.

That is odd. Are you sure you need this year's? Technically if your child is still in high school they aren't "eligible" for FAFSA.

 

[teller80]

My mom passed away in 2013, with the biggest part of my inheritance coming from the sale of her house. My savings balance went up 10 fold from the year before (basically from nearly nothing, to something) . My income stayed about the same. My EFC went from $27,500 to $24,000. I don't consider that money having much of an impact.

Your EFC went down? I would of thought the inheritance would of made it go up.

 

[teller80]

Because of child support, my income is more than his. A financial planner advised us to indicate on the FAFSA form that our daughter resides with him, so that they will look at his income over mine, and she would be more likely to receive more aid that way.

That makes me nervous --- isn't that cheating? I don't like to lie.

Methinks it's time for a new financial planner, and you should think about reporting him to the ethics board.