FAFSA

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Applying For Financial Aid

Applying For Financial AidIf your son or daughter is going to college, then you already know that you need to apply for financial aid. What you may not know is that there are two different financial aid applications.

First, let’s talk about the application everyone needs to fill out before we talk about the application some of you will need.

The FAFSA is the Free Application for Federal Student Aid. It’s the application that is required by every college in order to consider and then award financial aid to your son or daughter. The FAFSA is free and while it will take some time to fill out, if you organize yourself ahead of time it will be much easier.

The FAFSA is a smart form which you will find very helpful. Based on the information you enter, the FAFSA customizes the questions so that you only need to answer questions that pertain to your individual situation.

While everyone needs to fill out the FAFSA, based on colleges you are applying to, some of you may also need to fill out the CSS Profile.

The Profile is only required by a couple hundred private schools in addition to some scholarship programs. Unlike the FAFSA, the Profile is not free. It will cost you $16 to register and then an additional $9 per school for each school to which you send the form.

Starting your Profile application is a two-step process. First, you must register. And you must do this in one shot. There’s no saving and going back, so get your documents and information together first, register for the Profile, and then complete the applications.

To help yourself out with the FAFSA and the CSS Profile, you will want to collect the following before you get started:

  • Student’s social security number
  • Student’s driver’s license number
  • Statements for checking and savings accounts
  • Copy of last year’s tax return and W-2’s
  • Statements for any investment accounts
  • Current mortgage statement (Profile only)

Both applications go live on October 1st so it’s important to start your financial aid application planning now. While the college admissions process is about to take center stage for the next couple months, it’s also time to think about the financial end of things. It can get complicated with college visits, prepping for the ACT and SAT, completing applications and looking at the financial picture.

If you want some help and guidance to make sure you’re doing it right, set up an appointment today for a free consultation.

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Eric Aug 28, 2013 , , , , , , , , , , , , , No Comments
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10 Things You Need To Know About The FAFSA

As we head into the end of January, high school seniors and their parents are filling out the Free Application for Federal Student Aid (FAFSA). While some of them might be done or just about done, ten things every family needs to know about filing the FAFSA:

1. It’s free. If you end up on a website that requires a fee to file the FAFSA, you’re in the wrong place.

2. It’s THE form required by ALL colleges which award federal aid. No FAFSA, no federal aid.

3. Both the parent and student need to obtain a PIN at www.pin.ed.gov before filling out the FAFSA.

4. For current seniors, the FAFSA has been available for filing since January 1st and the deadline is June 30, 2014. Yup, that’s right, 2014. Keep reading.

5. It runs on a July to June calendar where July 1st marks the “New Year.”  In other words, current high school seniors who intend on starting college this coming fall should be filing the 2013-2014 FAFSA.

6. To be considered for state grants, Connecticut residents must file by February 15th.

7. The FAFSA determines your EFC, your expected family contribution. This is the amount of money colleges will expect you to pay for one year of tuition, room, board and fees.

8. This EFC calculation is based on income and assets, not retirement money or home equity.

9. When parents are divorced or separated, the FAFSA is calculated on the parent who the student lives with for the majority of the year, the custodial parent.

10. When the custodial parent is remarried, the income and assets of the step-parent are included in the FAFSA calculation as well. It’s a federal law.

And the item I remind parents of all the time? You don’t need to have your taxes filed to fill out the FAFSA. Just enter an estimation based on the previous year. Then, when your taxes are filed, use the federal data retrieval tool to upload final information.

Have something to say? Use the comment box below or email me at eric@doblercollegeconsulting.com. If you think this makes a lot of sense, consider sharing it with someone you know.

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Eric Jan 20, 2013 , , , , , , No Comments
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Why You Should Know Your EFC

Last week I wrote a post about understanding the difference between net price and sticker price. Today, I wanted to carry the financial torch a bit further by talking about EFC.

EFC? What’s that you say? Another acronym?

Yup. The world of college admissions and financial aid is full of them.

EFC stands for expected family contribution. It is the amount of money you will be expected to contribute towards one year of your college costs. While it won’t paint the entire picture for you, it will serve as a starting point before you venture into how generous a school is with their aid. You won’t know your official EFC until after you’ve completed the Free Application for Federal Student Aid (FAFSA) and, in my opinion, this is too late. You can’t fill out the FAFSA until after January 1st of the student’s senior year when decisions on where you are applying have already been made.

Rather, you should know your EFC before you start getting too deep into looking at colleges.

Parents of freshmen, sophomores and juniors, I’m talking to you.

For example, let’s say your EFC is $25,000. If you are looking at a college where the cost of attendance is $55,000 you can immediately see that you will be hoping to get $30,000 in aid. Conversely, if the college’s cost of attendance is $30,000, you shouldn’t be expecting much of anything outside of the basic student loan.

In the case of the former, $30,000 is a big difference to make up. The next step is to understand just how generous a school is and if they are going to help you out. Typically, the biggest factor in whether or not a college is going to offer you a financial aid package that meets your need is how competitive you are as an applicant.

Do yourself a favor and obtain your estimated EFC now. Write it down, understand it and use it when you are researching schools and want to know what a school is going to cost you.

If you have questions or would like some help figuring out how to reduce the cost of college, use the comment box below or email me directly at eric@doblercollegeconsulting.com. I would love to hear from you!

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Eric Nov 18, 2012 , , , , , , , , No Comments