Help me understand about the FAFSA

[golfgal]

I think a pp said they don't consider home value. If that is true, why do they want to know your home value? Are they encouraging people to take out a
2nd mortgage to pay for college?

I thought I read this year's version of the FAFSA is suppose to be easier than it was in the past. Is this true?

They want to know what the equity is in your home and yes, they may consider that you may take a home equity loan to pay for school--thus having "unreported" money available--not that they expect you to take the money just that you could--same with life insurance, 401k's, etc. as long as you don't take money out of those accounts while your child is in school it isn't considered income to you (which is why if you are considering rolling over your IRA to a Roth IRA this year under the new allowances for that you might want to think twice about that if you have kids in college).

I just did FASFA online and found it remarkably easy.
The question regarding number of dependents in college was NOT specific to children...it was total number in household.

I must have misred that-I thought there was some small print that said not including parents.

Phew. Thank you.

I about had a heart attack.

We have zilch for info back- how are you guys already doing them??

You are parents but you are not parents of a college student-either way it wouldn't apply to you--only if your parents are paying for YOUR schooling.

I guess I don't understand why anyone would fill this out. My DD is paying for her own college when it comes time. She won't be getting any type of loans but may apply for grants or even qualify for scholarships.

If she cannot afford it, she can work her way through school like me and DP did.

You can't get any grants without filling this out, most scholarships require you to fill it out and why on earth wouldn't you want to fill it out? Your child won't be able to get any aid from the school or the government to offset the cost of college. My son is paying for most of his schooling too but we are not going to deny him the chance to lessen the cost through grants and scholarships and he WILL take at LEAST one loan because I believe it gives them a head start establishing a credit rating and helps them learn to manage bills when they graduate.

 

[testifyoncruises]

You can't get any grants without filling this out, most scholarships require you to fill it out and why on earth wouldn't you want to fill it out? Your child won't be able to get any aid from the school or the government to offset the cost of college. My son is paying for most of his schooling too but we are not going to deny him the chance to lessen the cost through grants and scholarships and he WILL take at LEAST one loan because I believe it gives them a head start establishing a credit rating and helps them learn to manage bills when they graduate.

Oh. Did not know that about grants. But we will not have our child burdened with a school loan.

I don't want my child to have credit or ever use it. We don't use it ever and we do not take out loans in this family.

 

[Irin997]

You can't get any grants without filling this out, most scholarships require you to fill it out and why on earth wouldn't you want to fill it out? Your child won't be able to get any aid from the school or the government to offset the cost of college. My son is paying for most of his schooling too but we are not going to deny him the chance to lessen the cost through grants and scholarships and he WILL take at LEAST one loan because I believe it gives them a head start establishing a credit rating and helps them learn to manage bills when they graduate.

Absolutely 100% agree. It would be stupid not to fill out a FAFSA, regardless of your income. Not to mention the fact that the FAFSA is required for both federal AND state grants and scholarships that could potentially equal over $5,000 or 6,000 per school year. Plus, if you need to take loans, this allows you to qualify for federal backed subsidized loans that do not accumulate interest for the years that you are in school.

Granted my situation was a lot different than most college aged students (I had a child at 20), but filing the FAFSA allowed me to get thousands of dollars in FREE money for college plus supplement those grants and scholarships with federally backed student loans.

As I stated above, regardless of your financial situation, it would be stupid not to spend 30 minutes filing out an annual FAFSA.

 

[golfgal]

Oh. Did not know that about grants. But we will not have our child burdened with a school loan.

I don't want my child to have credit or ever use it. We don't use it ever and we do not take out loans in this family.

You have never had a mortgage??? Heck, even your auto insurance rates these days are based on your credit rating. So, what happens if your child takes out a loan when she is an adult and living on her own??

 

[testifyoncruises]

Never had a mortgage, we paid cash for our house. We followed Dave Ramsey's plan to live like no one else so we could live like no one else. We use an agency that does not use credit ratings for insurance rates.

IF she takes out a loan, she is no child of mine. We are teaching her better than that though. She is well educated daily in the pitfalls of taking out loans.

 

[golfgal]

Never had a mortgage, we paid cash for our house. We followed Dave Ramsey's plan to live like no one else so we could live like no one else. We use an agency that does not use credit ratings for insurance rates.

IF she takes out a loan, she is no child of mine. We are teaching her better than that though. She is well educated daily in the pitfalls of taking out loans.

Which insurance company doesn't credit rate???

 

[testifyoncruises]

Which insurance company doesn't credit rate???

Both Amica and USAA offer rates not based on a credit rating.

 

[luvsJack]

I just did FASFA online and found it remarkably easy.
The question regarding number of dependents in college was NOT specific to children...it was total number in household.

I agree, I have found it to be very self explanatory.

OP, if your EFC ends up being too high for a grant; the school should have forms for special circumstances. You fill it out explaining the special circumstances you are facing that reduces your income or the amount of money available to you and attach documentation. For us, the student fills out the form, turns it in and the financial aid director reviews it and makes a decision of more aid for the student. I know that at the local university the financial aid office helps the student fill this out and make any necessary changes to the FAFSA, so you will need to find out which way your school does this.

For dependent students (up to age 24), the student's income and assets are considered first and then the parents'. I have seen several students that having a part time job has really hurt (in no way suggesting that a kid not have a part time job), because its as though the government thinks that 100% of the kid's pay should go toward their education.


For the poster that will dis-own their child for taking out a student loan--your kid, your choice; but you need to keep in mind that for many, many students no loan would mean no education. If your child can get through school with no loans that is all wonderful and good but not all students are able to do this. Student loans are not the best solution out there, but they do serve a purpose.

 

[testifyoncruises]

For the poster that will dis-own their child for taking out a student loan--your kid, your choice; but you need to keep in mind that for many, many students no loan would mean no education. If your child can get through school with no loans that is all wonderful and good but not all students are able to do this. Student loans are not the best solution out there, but they do serve a purpose.

My DP and I are of a mindset having been through it that we appreciate our education far more because we paid for it with our own hard earned money. We did not rely on others to get us through college.

 

[RitaZ.]

I guess I don't understand why anyone would fill this out. My DD is paying for her own college when it comes time. She won't be getting any type of loans but may apply for grants or even qualify for scholarships.

If she cannot afford it, she can work her way through school like me and DP did.

If she wants to apply for grants and scholarships, she will have to complete the application.

 

[golfgal]

My DP and I are of a mindset having been through it that we appreciate our education far more because we paid for it with our own hard earned money. We did not rely on others to get us through college.

Well, I paid for 100% of my college at a private school but part of that 100% were scholarships, grants and student loans. The rest I paid for working 3 jobs all summer long and working 30-40 hours/week while in school. I certainly appreciate my education.

 

[luvsJack]

My DP and I are of a mindset having been through it that we appreciate our education far more because we paid for it with our own hard earned money. We did not rely on others to get us through college.

Getting a student loan is not relying on others for anything. Its getting a boost to pay for college now and pay it back when the student is making a decent wage.

As for appreciating it more, somehow I think the single mom of two that came in my office today and was so happy that she got approved for a Pell grant that she was crying is going to darn well appreciate her education just as much as anyone else. Please, do not assume that everyone who receives financial aid doesn't appreciate it.

 

[natenapril]

Never had a mortgage, we paid cash for our house. We followed Dave Ramsey's plan to live like no one else so we could live like no one else. We use an agency that does not use credit ratings for insurance rates.

IF she takes out a loan, she is no child of mine. We are teaching her better than that though. She is well educated daily in the pitfalls of taking out loans.

So sad that it would take something like that for you to turn your back on your daughter.

I agree, I have found it to be very self explanatory.

OP, if your EFC ends up being too high for a grant; the school should have forms for special circumstances. You fill it out explaining the special circumstances you are facing that reduces your income or the amount of money available to you and attach documentation. For us, the student fills out the form, turns it in and the financial aid director reviews it and makes a decision of more aid for the student. I know that at the local university the financial aid office helps the student fill this out and make any necessary changes to the FAFSA, so you will need to find out which way your school does this.

For dependent students (up to age 24), the student's income and assets are considered first and then the parents'. I have seen several students that having a part time job has really hurt (in no way suggesting that a kid not have a part time job), because its as though the government thinks that 100% of the kid's pay should go toward their education.


For the poster that will dis-own their child for taking out a student loan--your kid, your choice; but you need to keep in mind that for many, many students no loan would mean no education. If your child can get through school with no loans that is all wonderful and good but not all students are able to do this. Student loans are not the best solution out there, but they do serve a purpose.

I agree! Great post

My DP and I are of a mindset having been through it that we appreciate our education far more because we paid for it with our own hard earned money. We did not rely on others to get us through college.

I really cannot fanthom your thinking. Would you rather people not get an education and rely on the welfare system?
Not saying that everyone who doesn't go to college needs welfare but everyone is not cut out for some jobs. And some jobs require a degree that costs MONEY.

 

[Irin997]

My DP and I are of a mindset having been through it that we appreciate our education far more because we paid for it with our own hard earned money. We did not rely on others to get us through college.

Umm, FYI, I am paying my way through college. I am paying back my loans to the government for my college education. Sure, I have a large financial burden on my back, but who is paying for it....ME! Oh and by the way, relying on the gov't to lend me money or give me free money towards my education doesn't make me appreciate my degree any less. I busted my behind for a long time to get this degree. And talk to my BF whose parents paid about 3/4 of his college and he is the most appreciative person towards his parents. He knows how awesome it was for his parents to pay for his education and would thank them every day if necessary.

And just curious, I think it's wonderful that you had the ability to pay for your home in cash, but I'd love to know how I'm supposed to save up $250,000 for a house in my area (very low low end of the price of homes) when I make 1/5 of that amount per year....and I'm a single mother.

Call me crazy but I think that I brought my child into this world, it only makes sense that I fully prepare her for adult life....and that includes helping her pay for college.

 

[testifyoncruises]

I really cannot fanthom your thinking. Would you rather people not get an education and rely on the welfare system? Not saying that everyone who doesn't go to college needs welfare but everyone is not cut out for some jobs. And some jobs require a degree that costs MONEY.

I really cannot fathom your thinking that anyone who does not get a school loan is going to be on welfare. It is called good old fashioned savings and WORK. If she is smart enough or athletic enough to get a scholarship to a school she cannot afford, wonderful. However, if she cannot, she will go to one she can afford and pay for by working.

 

[Shmily1]

I'm helping DS19 and DD18 through college and paying for thier new Mustangs to get there... I guess that means I'll never get the "parent of the year" award.

 

[Irin997]

I really cannot fathom your thinking that anyone who does not get a school loan is going to be on welfare. It is called good old fashioned savings and WORK. If she is smart enough or athletic enough to get a scholarship to a school she cannot afford, wonderful. However, if she cannot, she will go to one she can afford and pay for by working.

Not everyone can afford college without some kind of help. I went to a state school that still cost me more than I could afford while paying things such as rent, day care, food, gas, etc etc etc. Just because I have a good paying job doesn't mean I can't afford to pay for college without the assistance of student loans. I can't imagine that an 18 year old fresh out of HS will be working a job that will allow them to pay for daily living expenses plus the price of college. Each semester of college for me taking a full load of classes at a state school was over $5,000.

 

[natenapril]

I really cannot fathom your thinking that anyone who does not get a school loan is going to be on welfare. It is called good old fashioned savings and WORK. If she is smart enough or athletic enough to get a scholarship to a school she cannot afford, wonderful. However, if she cannot, she will go to one she can afford and pay for by working.

That's because you read the what you wanted too. Some people don't have what it take to get a good job right out of high school just like some people don't have the drive to go to college. What I was saying was if they can't finish school and they need govt help such as welfare because they didn't get financial help to pay for school you would be okay with that?
I feel bad for your daughter that your love for her is conditional.

 

[golfgal]

I really cannot fathom your thinking that anyone who does not get a school loan is going to be on welfare. It is called good old fashioned savings and WORK. If she is smart enough or athletic enough to get a scholarship to a school she cannot afford, wonderful. However, if she cannot, she will go to one she can afford and pay for by working.

And this line of thinking may very well mean the difference between her getting a job out of college and not-especially if she wants to go into a specialize field. Besides, getting an academic or athletic scholarship is relying on someone else for your schooling so by your line of thinking, you would disown her for that.

 

[luv2sew]

I have filled out Fafsa forms for the last 6 years..you have to do it for any type of scholorships or grants it does not necessarily mean that because you fill out the form you are agreeing to school loans you have the choice to not get the loans like the staffords.

I have always found them fairly easy to fill out if you have your completed tax returns in front of you when you do them. Most all the questions asked are from the filled out tax returns and I do think it includes the 401K information (unless they removed it for this year).

Be careful, if your child has money in any account that money will be counted as 100% going toward college so if the child needs a car or computers or whatever for college best that you take the childs money and get that for them before you fill out the fafsa. That is the advice that we got when we filled out for the first time.

I am very happy that this year I am filling out my very last fafsa form....yahoo!

I have 2 kids in college at the same time and we help all we can I no way want them to graduate with large school loans but also want to give them every effort to do well by allowing them to go to college with as little stress as possible so we do not require them to work so many hours that it gets in the way of their studies. They will graduate with only the stafford loans to pay back and that I think is reasonable.....they should be able to handle those loans.

I have a friend (I live in PA) who sent their son to California for college to establish residency in CA so he could get free tuition at college so that he did not have a large school loan to pay off at the time of his graduation, but turns out the expense of sending a kid out to CA to be on his own at age 19 was not such a great money saver either..