Which is better for financial aid eligibility?

[mominwestlake]

I read a great book earlier this year and will be waiting for the new version to fill out the 2010 FAFSA. The title was something like "How to pay for college and not go broke". It had lots of info on how to fill out the FAFSA form and how to prepare.

I also recommend this book. It does give advice on what to do before your child is a senior in high school so it might help you decide if you should pay off your house or not. Maybe see if your local library has it?


My ds will be a senior in HS next year. From the schools I have looked at, I realize the importance of the SAT/ACT scores in terms of getting money for school that doesn't have to be paid back. We only make a modest income and really no remarkable assets, and we won't qualify for financial aid that doesn't need to be repaid. DS took an ACT prep class and we are hoping it paid off in a score increase so he qualifies for merit aid.

 

[allison443]

Steve -- I can't imagine you qualifying. Because of your past posts, I'm sure you have a college fund for your daughter and investments for yourselves. My DH and I work in very moderate income jobs and are definitely not wealthy, but we've never received any need-based aid.

I think it can be helpful to find an EFC calculator online, plug in your numbers (income, etc.) and take a look at what comes up. Your income is a large factor. Sometimes it is not worth filing the FAFSA (unless required for merit aid).

 

[allison443]

My ds will be a senior in HS next year. From the schools I have looked at, I realize the importance of the SAT/ACT scores in terms of getting money for school that doesn't have to be paid back. We only make a modest income and really no remarkable assets, and we won't qualify for financial aid that doesn't need to be repaid. DS took an ACT prep class and we are hoping it paid off in a score increase so he qualifies for merit aid.

You make a good point about seeking out merit aid. Some schools, including many top-ranked schools, give ONLY need-based aid. There are no merit scholarships for Harvard!

However, especially at schools where your child would rank at the higher end of the admitted students, there can be merit aid that does not take need into account.

Good luck to your son

 

[msmayor]

I think it can be helpful to find an EFC calculator online, plug in your numbers (income, etc.) and take a look at what comes up. Your income is a large factor. Sometimes it is not worth filing the FAFSA (unless required for merit aid).

I know that there are some that think its not worth the time, and those that think its a 'nightmare' to complete. Its not. With the right information from your tax return it takes about 20-30 minutes to complete on-line.

As you said, some schools will require it in order to accept any merit aid (my daughter's school is an example). It is also required if the student wishes to take advantage of the Stafford Federal Student Loan program. Even WITH financial resources, I personally feel that if your student qualifies for any subsidized federal loans they are worth taking, since the government pays the interest until 6 months after graduation. They can be repaid at any time...even before graduation...and can give a student and their family some flexibility in paying for college.

 

[allison443]

I know that there are some that think its not worth the time, and those that think its a 'nightmare' to complete. Its not. With the right information from your tax return it takes about 20-30 minutes to complete on-line.

As you said, some schools will require it in order to accept any merit aid (my daughter's school is an example). It is also required if the student wishes to take advantage of the Stafford Federal Student Loan program. Even WITH financial resources, I personally feel that if your student qualifies for any subsidized federal loans they are worth taking, since the government pays the interest until 6 months after graduation. They can be repaid at any time...even before graduation...and can give a student and their family some flexibility in paying for college.

I agree it is not hard to fill out...I think the "nightmare" is quite exaggerated. My dd's school didn't require it for merit aid, however, I guess it's easy enough to find that out from the individual school.

 

[disykat]

Steve -- I can't imagine you qualifying. Because of your past posts, I'm sure you have a college fund for your daughter and investments for yourselves. My DH and I work in very moderate income jobs and are definitely not wealthy, but we've never received any need-based aid.

I thought the same thing. I plan on filling it out, but know we won't get anything at the state schools. If my son applies to private schools, my hope is that his GPA is good enough to get his costs down to state school levels. They'll have to give him something if they want him because we couldn't afford to pay more than state school costs. We will fill in out in case he gets work study.

We're going to be paying off our mortgage early - probably right around FAFSA time - but it's mainly to free up cash flow because we anticipate paying out of pocket for college.

 

[GoofyBaseballMom26]

I don't know how anyone with any assets to name qualifies for pell grants. My DS & DDIL had a AGI of <$32k last year, he is applying to go to a school with a yearly cost of >$16k and they did not qualify for any "free" money. Any ideas??? I thought they would qualify for at least a little bit.

 

[laurafergie]

I wanted to mention that this year there were very significant cuts in State and Federal funding for college financial aid - That means there will be less and less free money, ie grants - and more loans - which as a PP mentioned, ARE considered aid.

I also wanted to touch again on the point that the financial aid can be appealed if there are significant cash flow issues that do not appear on the tax forms or the fafsa. High medical expenses and unemployment are big ones.

Also, if your income is lower - always apply for the free and reduced lunch program in the public schools. You never know, you may qualify. That is a significant question on the fafsa.

 

[Colleen27]

I don't know how anyone with any assets to name qualifies for pell grants. My DS & DDIL had a AGI of <$32k last year, he is applying to go to a school with a yearly cost of >$16k and they did not qualify for any "free" money. Any ideas??? I thought they would qualify for at least a little bit.

Yeah, I'm not sure either but if you figure it out let me know. Our AGI is just a little higher than than, but we've got 3 kids, a house, and the other expenses that go along with adulthood, and still we're too "well off" for gift aid. I'd need about 30K in student loans to finish my degree (just 2 years at a public university, did the first 2 cheaply at community college), so that's probably something that won't ever get checked off my bucket list.

 

[laurafergie]

I don't know how anyone with any assets to name qualifies for pell grants. My DS & DDIL had a AGI of <$32k last year, he is applying to go to a school with a yearly cost of >$16k and they did not qualify for any "free" money. Any ideas??? I thought they would qualify for at least a little bit.

32K is pretty high for AGI for 2 people. The lower your EFC number in on your fafsa the better chance for grants, and I'm talking Zero to maybe a few thousand.

http://www.thepellgrant.com/pell-grant-eligibility.shtml

Students with a total family income up to $50,000 may be eligible for Pell Grants, though most Pell funding goes to students with a total family income below $20,000.

 

[Tinker'n'Fun]

I had to file both the FAFSA and CSS for DD this year. The FAFSA was very straight forward and did not ask for too much information vs. the CSS which is very, very detailed. Plus you had to pay for the CSS profile to be sent to the schools that requested it. In the end, I don't believe the CSS helped her get additional funds at all. Her scholarships and grants were all over the place from different schools. Some gave much more than others. I really think in the end, you have to be a fit for the school. Even if your income is high/low, if the school wants you, they will work with you.

 

[semo233]

Also, if your income is lower - always apply for the free and reduced lunch program in the public schools. You never know, you may qualify. That is a significant question on the fafsa.

YUP. If you qualify for anything, I believe you also can get free/reduced fees on SAT's and on college application fees!!

 

[tar heel]

The OP is a PHYSICIAN -- somehow I don't think his family qualifies for free lunch or reduced college application fees . . .

 

[disneysteve]

Thanks for all of the responses. Yes, I am a physician, but I have heard and read in recent years that as college costs have continued to climb, folks who might not previously have qualified for any financial aid now do. I have several friends who were able to get some form of aid, even if it was just low interest loans, despite earning more than I do. When you've got private schools (like the school I attended) charging well over $40,000/year (it was under $10,000 when I went), even many professionals don't earn enough to pay those kinds of costs.

I don't expect to qualify but I'm certainly going to apply and see what happens. We've got 4 years until college but I just wanted to start some early planning because if paying off the mortgage would be to our advantage, we need to start working on that now.

 

[crisi]

My ds will be a senior in HS next year. From the schools I have looked at, I realize the importance of the SAT/ACT scores in terms of getting money for school that doesn't have to be paid back. We only make a modest income and really no remarkable assets, and we won't qualify for financial aid that doesn't need to be repaid. DS took an ACT prep class and we are hoping it paid off in a score increase so he qualifies for merit aid.

My parents had a pretty modest income and I aced the ACT (and did pretty well on the SAT) - I got "honorary scholarships" - no money, just the right to say I'm a National Merit Scholar.

 

[greens_in_WA]

Maybe try plugging in the numbers on one of these calculators and see which way works out best?

http://www.finaid.org/calculators/finaidestimate.phtml

 

[cats mom]

I think it can be helpful to find an EFC calculator online, plug in your numbers and take a look at what comes up. Your income is a large factor. Sometimes it is not worth filing the FAFSA (unless required for merit aid).

The part I took the liberty of bolding is very important. I actually had a counselor at a FAFSA workshop suggest I not even bother filling out and submitting the forms, because there was no way we were going to qualify for anything.

OK, I never expected to qualify for need based aid, but in order to apply for any merit based awards at DD's university, you have to have FAFSA forms on file, no matter what your financial situation is.

My parents had a pretty modest income and I aced the ACT (and did pretty well on the SAT) - I got "honorary scholarships" - no money, just the right to say I'm a National Merit Scholar.

DD got a couple of honorary awards, with no monetary value attached, for high scores/grades/achievement too. Sure, the recognition was nice, but a little financial reward would have been even nicer.

I was a bit surprised at how much difference there is from institution to institution when it comes to how many, if any at all, merit based scholarships are awarded.

Thankfully DD's top choice university does reward achievement, not just need.

 

[punkin]

The part I took the liberty of bolding is very important. I actually had a counselor at a FAFSA workshop suggest I not even bother filling out and submitting the forms, because there was no way we were going to qualify for anything.

OK, I never expected to qualify for need based aid, but in order to apply for any merit based awards at DD's university, you have to have FAFSA forms on file, no matter what your financial situation is.

DD got a couple of honorary awards, with no monetary value attached, for high scores/grades/achievement too. Sure, the recognition was nice, but a little financial reward would have been even nicer.

I was a bit surprised at how much difference there is from institution to institution when it comes to how many, if any at all, merit based scholarships are awarded.

Thankfully DD's top choice university does reward achievement, not just need.

Several of the schools DD applied to required this. We got nothing as far as financial aid except unsubsidized loans (which are not aid in my opinion). However she got some nice merit offers from some places. Unfortunately, the college she ultimately chose, gave us almost nothing.