FAFSA: The Free Application for Federal Student Aid. All students interested in financial aid (free endowment monies) for college will need to complete this form. Usually, the parents/guardians fill it out using their tax return.
- Don’t include retirement assets on the FAFSA: The FAFSA doesn’t care how much you’ve got in your 401k/IRA/pension. They do ask about cash, savings and checking accounts to name a few items.
- Don’t wait until your 2017 taxes are done to complete: Use estimated 2016 tax return numbers then adjust them later. This is one of the biggest mistakes as the FAFSA completion holds your place in line for free endowment money when the coffers are full! Complete it before the end of February then adjust it when your 2017 taxes are done. This is especially important if you file a filing extension.
- Don’t forget to list the colleges: You can include up to 10 colleges your son/daughter has applied to. The federal processors will send the pertinent FAFSA info to the schools. You will need each college’s school code.
- Don’t inflate your education: If both parents didn’t graduate from college, don’t list “college” as their/your highest education even if you completed a few years. Plenty of schools treat these applicants more favorably if they are considered “first-generation” college students.
- Don’t assume you won’t qualify for financial aid because your house is too valuable: The FAFSA doesn’t care if you own a house*. They do ask about second homes and real estate investments.
Notes: One cannot receive endowment “free” money without first completing a FAFSA. If you apply to more than 10 schools you can go into FAFSA a week after completing, change some schools and they will receive the FAFSA info.
*Certain schools use the CSS (formula) profile whereby home equity and sibling assets will count against you.
Comments
One response to “5 Mistakes to Avoid When Applying for Your Student’s Financial Aid”
When it comes to completing the FAFSA, you want to read each definition and question carefully. Too many students see delays in their financial aid for simple mistakes that could have been easily avoided.