Articles
Writers

FAFSA For Dummies

FAFSA may be made easier!!

© Barbara Pytel

Mar 24, 2007
Lawmakers Are Considering Major Aid Changes , ablestock.com
It is about time for this proposed change! The FAFSA has been one of the major obstacles and challenges a family faces when applying for financial aid for college.

FAFSA

FAFSA stands for The Free Application for Federal Student Aid and is the major form used to determine eligibility for federal aid, including Pell Grants and student loans. It is available online or in paper form. It is a basic financial statement for college. However, it is seven pages long and very confusing.

Recent Proposals

Lawmakers are submitting new legislation that has bipartisan support and likely to pass. What is in this FAFSA bill?

  • seven page form reduced to two pages
  • improving online access for speedier processing
  • coordinating software with IRS to eliminate duplication and chance for errors
  • create a pre-FAFSA in the junior year so families have more time to prepare for college financially and merely update in the senior year

Even a Caveman Can Do It

Presently, even tax experts are confused by questions on the FAFSA. The College Aid Made EZ Act simplifies the process and encourages more students to apply for the aid. Presently, many of the students that would qualify for large sums of financial aid are so overwhelmed by the forms that they give up and don't apply. They don't know how to predict the cost of college and think they can't afford it.

So, what do the changes look like? The Department of Education and the IRS will coordinate financial data. By doing so, two-thirds of income-related questions are eliminated from the FAFSA form. A family could fill out the 1040 and this information would automatically be integrated within the FAFSA without confusing the parents and the student.

Democratic Priorities

Improving college access has been a top priority for the Democratic Congress. In the past two months, the following have been passed:

  • cut interest rates on federal student loans to "half"
  • passed Pell Grant fairness legislation for the neediest students
  • increase maximum Pell Grant scholarships by $260

Source: Press release from the Department of Education and Labor

EFC

The Expected Family Contribution is a key factor to students receiving aid and a product of the FAFSA form. The new bill asks for any students with a family income of below $30,000 to be automatically eligible for zero EFC. This means that a family with income below $30,000 would not be expected to contribute to college expenses.

Counselor Shortage

There is presently a counselor shortage. Many counselors have loads of over 500 and even 700 students. With a complicated financial aid formula, many students give up and go into the workforce with a limited education. School counselors do not have the time to help explain the process. Some students get so discouraged, they quit school. Dropouts state that being uninformed about options is one of the reasons they quit school.

Supporters

The supporters of this legislation are:

  • the American Association of Community Colleges
  • the American Council on Education
  • the Association of American Universities
  • the Association of Jesuit Colleges and Universities
  • the Center for Law and Social Policy
  • the National Association of College Admission Counseling
  • the National Association of Independent Colleges and Universities
  • the National Association of State Student Grant and Aid Programs
  • the National Association of Student Financial aid Administrators
  • the United States Student Association
  • the College Parents of America

Perhaps, it would have been better to ask for the small show of hands of organizations against this? Great changes possibly coming and it is about time. When will it come to be?

Related articles: SAT Errors, SAT and the Learning Disabled

Read previous articles on Educational Issues.

Copyright article 2007 Barbara Pytel. All Rights Reserved.


The copyright of the article FAFSA For Dummies in College Preparation is owned by Barbara Pytel. Permission to republish FAFSA For Dummies in print or online must be granted by the author in writing.


Lawmakers Are Considering Major Aid Changes , ablestock.com
Family Income of $30,000 Equals Zero EFC, ablestock.com
      


Post this Article to facebook Add this Article to del.icio.us! Digg this Article furl this Article Add this Article to Reddit Add this Article to Technorati Add this Article to Newsvine Add this Article to Windows Live Add this Article to Yahoo Add this Article to StumbleUpon Add this Article to BlinkLists Add this Article to Spurl Add this Article to Google Add this Article to Ask Add this Article to Squidoo

Comments
Feb 27, 2009 5:54 PM
Alan Thompson :
I just recently got done doing my FAFSA and it was a little detailed. I'd suggest anyone looking into getting the best loans and grants and offers (with a correctly filled out FAFSA) should look into professional advice. I went through FAFSAUSA.COM and got some great service. Again, if you are filing and up against the deadline make sure you fill that form out correctly. And always remember your PIN! :)
Mar 16, 2009 8:00 PM
MFallon :
Don’t include untaxed Social Security as income. The law changed this year. Reporting it will inflate your expected family contribution and lower the amount of aid for which you are eligible.

Children of divorced parents typically believe that the parent they live with is their legal guardian and that they are in a legal guardianship. This is not true in all cases. A wrong answer will incorrectly change the student’s dependency status to “independent” and impact the aid calculation.

More families are withdrawing funds from retirement accounts early – sometimes it’s taxed and sometimes it’s not. Counting these funds in both adjusted gross income and untaxed income will inflate your expected family contribution and decrease aid.

If you or a family member has had their job eliminated, you may be eligible to answer “yes” to the “dislocated worker” question. You need to meet one of four criteria on the day that you submit your FAFSA. Student Financial Aid Services is seeing that one in every 10 families has a member whose job has been eliminated. Being a “dislocated worker” affects how your assets are treated and could even reduce your expected family contribution to zero.

Consider getting student aid advice and FAFSA preparation help from paid professionals. Federal law allows paid professional FAFSA preparation, much like tax advisors help families prepare their taxes accurately and correctly to maximize their tax refunds. Choose a professional FAFSA preparer who has a good Better Business Bureau rating, uses people to review each answer to ensure accuracy, receives high ratings from past clients, and has the goal of making you eligible for the most aid possible. With the average student aid award of $9,500 at stake, help from a pro FAFSA preparer can relieve some of the stress of finding money for college.

Don’t include your primary residence as an asset, or you will be inflating your expected family contribution and lowering your potential for aid.

Not all businesses are treated the same when calculating assets. Different rules apply to family-owned businesses employing fewer than 100 people. Getting this wrong won’t reject your FAFSA, but it could lower the amount of aid for which you are eligible.

List your last name exactly as it appears on your Social Security card or your FAFSA will be rejected.

Double-check all numbers. Sounds simple, but transposing numbers is one of the most common mistakes and will affect your aid award.
2 Comments
about us • Limelight Blog • freelance writing jobs • careers • press room • Site Map • Terms & Conditions • Privacy Policy