Help me understand about the FAFSA

[Janet Hill]

IRA and 401(k) asset values are not counted for how much a family can afford to contribute; however, distributions from these accounts are considered. You can get a lot of this info at financialaid.org (I think this is the right website).

 

[MelanieC]

I'm so not looking forward to doing the FAFSA. Just waiting on our W2's so we can do this. I want to get it done early.

 

[flamom]

OP i was worried about doing the FAFSA also but doing it online is suprisingly very easy at least it was for me. you can also do the FAFSA forecaster first and that will tell you what your EFC will be and what your child will qualify for as far as grants and loans. After you fill out the FAFSA financial aid will contact your child on what else is needed like tax returns,etc. Good luck!

 

[testifyoncruises]

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.

There is a big difference between a grant and a loan.

If she is anything like DP and I, she will not rely on others for a job but she will be an entrepreneur and will create jobs for others. I find it completely sad that anyone would want to burden their children with the slavery that a loan creates. We believe the quickest way to financial peace is to not take on debt ANY debt. WE believe in what Dave Ramsey believes, all debt is dumb.

 

[minkydog]

There is a big difference between a grant and a loan.

If she is anything like DP and I, she will not rely on others for a job but she will be an entrepreneur and will create jobs for others. I find it completely sad that anyone would want to burden their children with the slavery that a loan creates. We believe the quickest way to financial peace is to not take on debt ANY debt. WE believe in what Dave Ramsey believes, all debt is dumb.

And i think there are a lot of people here who disagree with you. That doesn't make either one of us right--we are entitled to our individual opinions. I dearly hope that your wonder kid can pull off your grand plans. But if she can't I'm sure you will love her anyway, despite your contention that a child who takes out loans is no child of yours. Frankly, I don't believe that!

I see taking on debt as a calculated risk. When I went to college I had several scholarships and grants,and I worked 15-20 hrs a week. ANd I still couldn't pay for college! My parents had NO money. I couldn't work more, and barely could get that much in because I was taking a very rigorous nursing program. My only hope was to take out a loan. A calculated risk that I would graduate and find a good job which would allow me to pay the loan back. Which is exactly what happened. I got a job, lived at home for a year, bought a car and paid off the loan in 2 years. Without that loan I could never have paid for my education.

My DD16 will very likely be taking out a loan. I would love to give her a free ride, but with our circumstances that will be impossible. We are living just above the poverty level now. DD knows the situation. She is looking into public state colleges as well as private colleges with big endowments. She is even looking into a couple "work colleges" where every student works in exchange for tuition. She knows she's going to have to apply for every scholarship possible. And we've talked about the fact that loans have to be repaid and she needs to think about that, given that she plans to major in the arts and probably won't be making all that much after graduation. She doesn't want to graduate with a 6 figure debt load.

 

[golfgal]

Ok, I figured out the number of people in college confusion-if you look at the form it asks for the number of people in the household that are in college, if you look at the SUMMARY form it shows the number of people in college, not including parents --figure that one out.

 

[disykat]

I guess I don't understand why anyone would fill this out.

Please allow your dd to fill out the FAFSA. My parents did not. I lived on a small campus with no car, no businesses close by, and no easy bus access to businesses and found it impossible to get work. Some semesters I could work in the cafeteria, but not always because work study was priority. I was not qualified for other campus jobs despite having offers because, on my campus, there was not a shortage of workstudy applicants - who HAD to be employed first.

I anticipate very little or no "help" from filling out the FAFSA, but I hope my kids will qualify for work study so they can work on campus.

 

[Nancy]

Please allow your dd to fill out the FAFSA. My parents did not. I lived on a small campus with no car, no businesses close by, and no easy bus access to businesses and found it impossible to get work. Some semesters I could work in the cafeteria, but not always because work study was priority. I was not qualified for other campus jobs despite having offers because, on my campus, there was not a shortage of workstudy applicants - who HAD to be employed first.

I anticipate very little or no "help" from filling out the FAFSA, but I hope my kids will qualify for work study so they can work on campus.

I agree......Fill it out...the whole thing is not hard at all. All you need to have if the tax returns, doing it on line is a piece of cake. Every school my kids went/are going to would not even give any type of financial aid package without it. Unless you don't care about saving money and not spending a fortune on college you need to take a vary small part of your day to fill it out.

 

[barkley]

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

some internship opportunities are tied to it as well. i had the opportunity to work side by side with the head of the department i majored in-the only people who could compete for the opportunity were those who qualified for work-study (though many would have paid to). dh has a class this quarter being taught by a student in the master's program at his university-an opportunity afforded the teacher through a grant.

 

[Tinker'n'Fun]

I really need some advice. I did the FAFSA for my daughter, but since my SSD is considered a 0.0 on my taxes, they said I should not claim it. And my DD gets SSD benefits through me, but they are not claimed on taxes anywhere. I don't want to cheat anyone and I feel guilty. Does anyone know if I should put this under untaxed income or can I just let it go. I did enter my DH's income form work, and DD added her's (not much but she added it). Thanks is anyone can help.

 

[PoohnPglet]

I really need some advice. I did the FAFSA for my daughter, but since my SSD is considered a 0.0 on my taxes, they said I should not claim it. And my DD gets SSD benefits through me, but they are not claimed on taxes anywhere. I don't want to cheat anyone and I feel guilty. Does anyone know if I should put this under untaxed income or can I just let it go. I did enter my DH's income form work, and DD added her's (not much but she added it). Thanks is anyone can help.

You do not claim it. If you are selected for verification, you will be given an opportunity to explain your income source at that point. If you want more clarification - call the contact us number on the FAFSA website.

 

[golfgal]

I really need some advice. I did the FAFSA for my daughter, but since my SSD is considered a 0.0 on my taxes, they said I should not claim it. And my DD gets SSD benefits through me, but they are not claimed on taxes anywhere. I don't want to cheat anyone and I feel guilty. Does anyone know if I should put this under untaxed income or can I just let it go. I did enter my DH's income form work, and DD added her's (not much but she added it). Thanks is anyone can help.

There is a reason they don't have you claim that income. It is not cheating. They tell you right on the form not to claim disability income so don't worry about it and don't add it in. I am self-employed and there are special rules about adding that income in too. With my business deductions my actual "income" is pretty low but thin instructions specifically say to add this line from your taxes so that is what I did.

 

[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.

I think we will bookmark this post and come back when your child is old enough to start this process and see how your plan works out. Your DD is in FIRST GRADE.

Just an FYI, most places will not even LOOK at a job application without at least some kind of schooling on it. Your choices are VERY limited and often result in a minimum wage job, which in most parts of the country qualifies you for welfare. There is only so much savings that can be done on $7/hour if you like to do things like eat. Keep in mind that even at an inexpensive 4 year state school, it will cost more than someone that makes minimum wage makes in a YEAR. I am going to assume you have not been to college or you would know this already.

 

[testifyoncruises]

Just an FYI, most places will not even LOOK at a job application without at least some kind of schooling on it. Your choices are VERY limited and often result in a minimum wage job, which in most parts of the country qualifies you for welfare. There is only so much savings that can be done on $7/hour if you like to do things like eat. Keep in mind that even at an inexpensive 4 year state school, it will cost more than someone that makes minimum wage makes in a YEAR. I am going to assume you have not been to college or you would know this already.

Actually this is not true. You can get your basics at a community college for less that you can earn in a month doing something as simple as delivering pizzas or working as a waitress.

Secondly, if we are lucky and DD follows the path of DP and I she will be an entrepreneur and not work for others. Not going to college is frankly not an option and she can stay in this house as long as she goes (if she wants a break on the cost of housing.)

She will not be a slave to anyone when it comes to loans and will work for it and will not borrow to get her degree. We are not raising a child to continue an endless cycle of debt. We talk about this when we do volunteer work and take out a payment to a credit card company from one of our senior clients we visit. I want her to never be faced with that in her life.

 

[golfgal]

Actually this is not true. You can get your basics at a community college for less that you can earn in a month doing something as simple as delivering pizzas or working as a waitress.

Secondly, if we are lucky and DD follows the path of DP and I she will be an entrepreneur and not work for others. Not going to college is frankly not an option and she can stay in this house as long as she goes (if she wants a break on the cost of housing.)

She will not be a slave to anyone when it comes to loans and will work for it and will not borrow to get her degree. We are not raising a child to continue an endless cycle of debt. We talk about this when we do volunteer work and take out a payment to a credit card company from one of our senior clients we visit. I want her to never be faced with that in her life.

It is VERY true for a 4 year school-I said nothing about Community College because quite frankly, that is not an option for our kids. They WILL go away to school and live in the dorms as there is a WEALTH of learning that goes along with having to live on your own for the first time and we would rather have that happen when they are in college vs being out in the workforce.

The right kind of debt is not the evil you make it out to be. We have a mortgage for shear financial purposes. I can't imagine tying up that kind of money into a house when I can make a MUCH better rate of return in our investment accounts(especially now with the housing slump). Do the math and you will see where your strategy is costing you money in the long run. We had student loans which we paid on for less than 5 years, we only have a car payment because we got a good deal on the car with zero percent financing-and it would be stupid to pay cash and lose the interest we were making in our investments. We have no other debt and very healthy investment accounts (of which we actually had a GAIN in 2008 because we were smart about them). The thin is we also have money set aside that we could pay off our mortgage and car payment if we wanted but it makes ZERO sense to do so.

 

[testifyoncruises]

It is VERY true for a 4 year school-I said nothing about Community College because quite frankly, that is not an option for our kids. They WILL go away to school and live in the dorms as there is a WEALTH of learning that goes along with having to live on your own for the first time and we would rather have that happen when they are in college vs being out in the workforce.

You just keep on thinking they will go AWAY for school. My child can go away to any number of state schools in my state and make enough money to pay for school and housing expenses. There is no set rule that says they have to finish in four years or even six years. Who ever decided that rule in the first place?

The right kind of debt is not the evil you make it out to be. We have a mortgage for shear financial purposes. I can't imagine tying up that kind of money into a house when I can make a MUCH better rate of return in our investment accounts(especially now with the housing slump). Do the math and you will see where your strategy is costing you money in the long run. We had student loans which we paid on for less than 5 years, we only have a car payment because we got a good deal on the car with zero percent financing-and it would be stupid to pay cash and lose the interest we were making in our investments. We have no other debt and very healthy investment accounts (of which we actually had a GAIN in 2008 because we were smart about them). The thin is we also have money set aside that we could pay off our mortgage and car payment if we wanted but it makes ZERO sense to do so.

There is no good debt at all. And if you think you got a good deal on a new car you are fooling yourself unless you plan to drive it until the wheels fall off which most people are not.

 

[golfgal]

You just keep on thinking they will go AWAY for school. My child can go away to any number of state schools in my state and make enough money to pay for school and housing expenses. There is no set rule that says they have to finish in four years or even six years. Who ever decided that rule in the first place?


There is no good debt at all. And if you think you got a good deal on a new car you are fooling yourself unless you plan to drive it until the wheels fall off which most people are not.

Well, considering my kids are in high school with my oldest going away to college next fall I am pretty sure I know they will be going away for school. Our rule here is at least 2 hours away.

We do drive our cars until they die and we did get a good deal on the car. Our first car we drove for 16 years, our second car we drove for 14 years. We have only had this car for 4 years so far so who knows how long we will drive it exactly.e

 

[luvsJack]

I really need some advice. I did the FAFSA for my daughter, but since my SSD is considered a 0.0 on my taxes, they said I should not claim it. And my DD gets SSD benefits through me, but they are not claimed on taxes anywhere. I don't want to cheat anyone and I feel guilty. Does anyone know if I should put this under untaxed income or can I just let it go. I did enter my DH's income form work, and DD added her's (not much but she added it). Thanks is anyone can help.

You may be picked for verification and the verification sheet will ask for SSD income information. Don't worry, being chosen for this DOES NOT mean that your daughter's assistance is in jeopardy or that you did anything wrong. Its either a random choosing or from some answer on the form they can see there is income that is not included (again, not your mistake but because there is no where on the fafsa form to put the info) and that put up a red flag. You will just fill out the form and turn in a copy of your taxes. The financial aid office will complete the process of verification and then let you know if there were any corrections necessary on the fafsa. This may or may not change your EFC.

 

[luvsJack]

Golfgal, I'm not really sure why community college is not an option for your kids; but I do hope you realize that they can get the exact same English, Math and Science classes at a community college for a LOT less money. Our academics are actually taught by adjunct instructors who are also professors at a local university. And they can also still get the dorm experience. Up to you, but just thought I would throw that out there.


testifyoncruises: I am so glad that you have been able a life that enables you to be 100% debt free. That is great for you and is your choice. I would hate to know that I was pushing all of my choices on my child. Even Dave Ramsey would probably say to you that you should allow your child to make her own choices and threatening to disown her over a loan is so many degrees of wrong and so much more wrong than having any kind of debt at all.

Just remember that Dave Ramsey made many mistakes in his life and had to rebuild his fortune--which he did. . .selling books. . . to people in debt. He has great advice but he has no way of knowing everything about everyone's situations. And is mainly speaking from his own experience.

If a person is on welfare or from a disadvantaged family there is not one thing wrong with there getting financial aid and/or loans. They are bettering themselves and their situation.

Come to think of it, I thought I remembered Mr. Ramsey saying that there is good debt and that school loans are good debt because having a degree will increase your income.

 

[Tinker'n'Fun]

To everyone who answered my questions, thank you I feel much better now. Just need to update with DH's real numbers and we are done.