Do not assume you are is ineligible for financial aid —
everyone should complete and submit the FAFSA.
The FAFSA takes into account financial information from the
previous calendar year. Families with students entering school in
2002 will submit 2001 financials. Federal financial aid is not
based on home equity or retirement funds. A portion of parent
savings and investments are excluded from Expected Family
Contribution (EFC) calculations. When more than one student is in
college at the same time (including graduate school), family
resources are assumed to be split among current students, often
making the contribution expected for each individual student
lower.
Shifting Assets
Because 35 percent of student personal savings and investments
are expected to be contributed toward their education (compared
to less than 6 percent of parent assets), some parents choose to
shift assets in their children's name to their own name. If you
are considering this option, use caution. Always check with a
financial advisor before shifting any assets and be very careful
if advised to shift any assets out of your immediate family.
Complete the FAFSA ASAP
Complete the FAFSA as soon as possible after January 1st of the
year the student plans to attend school. Be very mindful of all
deadlines. It's a good idea to create a checklist of when all
applications and forms are due.
Don't Wait to File
Apply for financial aid before the student is accepted to the
school of his or her choice. Start the process at least 6 ot 9
months before classes begin. Start earlier if school deadlines
require that. Also, estimate income tax figures carefully when
completing the FAFSA. You will have the opportunity to amend
these figures when you receive the Student Aid Report (SAR).
On the FAFSA, You Will
Need:
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federal, state, and local tax returns (or
estimates) |
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W-2 forms |
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student's driver license (if
applicable) |
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untaxed income records |
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bank statements |
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business records |
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records of stocks, bonds, mutual funds, and
other types of investments (including CDs and money-market
accounts) |
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social security numbers |
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farm records
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A Few Tips:
1. Use a photocopy of the FAFSA as a draft; use an original for
the final version.
2. Double-check all entries, including the social security
number. 3. Print neatly and carefully, using a No. 2
pencil.
4. Obtain the Department of Education school code (or Title IV
code) from each school to which the student is applying.
5. Do not leave any blanks. Enter a zero if the item is not
applicable.
6. Do not use White-Out.� Draw a single line through any errors
and initial the corrections.
7. Keep copies of everything you send.
8. Mail the FAFSA first class and ask for a postal receipt.
9. If there are any unusual circumstances you believe are not
reflected in the FAFSA, send a letter explaining your situation
to each financial aid office of the schools to which the student
is applying.
10. If you're sure that your family is not required to file a
1040 tax form, fill in either oval "A" or "C" for question 53
and/or question 65 on the FAFSA. This indicates your family is
eligible to file either a 1040A or 1040EZ. If your family is
eligible to file either form 1040A or 1040EZ, it is recommended
that you do so. Indicating another form on the FAFSA may
negatively affect eligibility for certain types of financial
aid.
11. Most importantly, do not forget to sign the FAFSA!
More...
If you have any questions about the FAFSA, you may call the
Federal Student Aid Information center at 1-800-4-FED-AID.
