FAFSA clarification

Paying for College
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<p>Ok - making sure I'm right.</p>

<p>Helping a relative with the FAFSA. The student fills out. Her divorced, custodial mother fills out another one. Both use their own Pins. Right?</p>

<p>Second question - we are going to estimate income to get in line. Do we refile a completely new FAFSA when we get income tax done - or can you modify the existing one somehow?</p>

<p>thanks again.</p>

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<p>I think she only fills out one FAFSA. There is space for student and parent information. Both sign the final version with their pins, so they need separate pins. But one FAFSA.</p>

<p>Colleges do want updates to the numbers, but I think you typically print out the FAFSA SAR (you get access after submitting the FAFSA), mark up the copy, and send it. Archaic…</p>

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<p>The student and parent fill out the same fafsa application, the student fills out the student section and the parent fills out the parent section. They can work together on both though. Each signs the one fafsa application with their own pin.</p>

<p>Later, when taxes are done you go back in to the same application and update the income section, or better yet use the irs data retrieval tool to have IRS data automatically update the fafsa.</p>

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<p>Thank you - does anyone know this for sure?</p>

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<p>I’ve completed seven FAFSA forms with my kids. There is ONE FAFSA that has a parent section and also a student section. The student and their custodial parent (the parents with whom the child resides) complete the FAFSA…so in this case the mom would fill in parent info in the parent section and student would do the student info in the student section. Both the student and the mom need a PIN to sign electronically.</p>

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<p>Thanks a ton. Thumper1 - is the info on how to finalize with final tax numbers right as well? Print, modify and mail?</p>

<p>thanks.</p>

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<p>The assets (bank balance, stock value, etc.) reported on the estimated FAFSA, CANNOT BE CHANGED on the update UNLESS the values reported on the original date were incorrect for that original date. If there is a big expense coming up that they know about, and the money is ready and sitting in the bank, they might want to pay that bill early. </p>

<p>Mom’s assets over the protected amount determined by her age, are assessed at 5.6%. Kid’s assets are assessed at a much higher rate, and have no protection.</p>

<p>To help you understand the logic of the FAFSA, google EFC formula 2014 and print out the PDF of the formula itself. The three of you can work through it once on paper, and see if there is any money that needs to be moved.</p>

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<p>No it isn’t, read my previous post. The retrieval tool should be available about a week after taxes are filed electronically, longer if mailed. If either the student or parent owes a payment with taxes, pay it right away. The retrieval tool and tax transcripts won’t be available until the IRS gets the payment.</p>

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<p>annoyingdad - thanks we must have cross posted. I went through the FAFSA with her - but did not see the “irs data retrieval tool” …both plan to file soon as they can.</p>

<p>How do we go about linking those after we submit?</p>

<p>They have no savings, assets, and should have EFC of zero. We just have to modify with actual 2012 earnings -which will not be significantly different than 2011 estimates, but we have to put in the final numbers.</p>

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<p>In the past, people printed and mailed. Now they link the FAFSA and their tax returns online, and do the updates automatically. It is best if the taxes are filed electronically because this is quicker.</p>

<p>If the student applies to more than 10 colleges, after sending the results to the first 10 it is necessary to go back into the system and change the names and resent everything to the extra institutions.</p>

<p>In some states, to be considered for state money it is necessary that at least one in-state school is listed on the FAFSA when the first estimated version is filed. The kid should find out about that.</p>

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<p>The retrieval tool won’t be available until Feb. 3. Once it’s available you should see a link to it when you log in to the fafsa application. Click the link and follow the instructions.</p>

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<p>My process to file 2012-2013 (last year) FAFSA:
Early January

  1. Add up my assets and also my kid’s assets.
  2. Estimate our 2011 tax information.
  3. Submit the FAFSA, indicate that we will file the tax returns.</p>

<p>Early February

  1. E-file our 2011 tax returns
  2. Wait three weeks.
  3. Make correction to the FAFSA, indicate that we have file our tax returns.
  4. IRS Data Retrieval Tool will start and will transfer our 2011 tax information onto the FAFSA.
  5. Submit the FAFSA correction</p>
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<p>Thanks all- appreciate it.</p>