What if my estimates are way off? I am not sure what the best thing to do is–estimate and risk being way off? Income is very different than last year. Or just wait until I can file at the end of January? Any help is appreciated.
estimate what exactly?
google for the Net Price Calculator for each college.
sorry, estimate my income. We own a small business. Wondering if it is just best to wait to file the FAFSA when our taxes are actually done instead of estimating because I am certain my number will be off.
US Dept of Education wants you to estimate the incomes. See https://fafsa.ed.gov/fotw1415/help/fotwfaq68.htm
However, you don’t have to estimate the incomes if you don’t want to. Just remember some aid money are first come first served.
If you know that your estimates are “way off,” then why not use an estimate that isn’t.
For instance, if income is actually much lower than you estimate, then estimate lower and later adjust to the right number.
If you already know that income is much different (either higher or lower) then why not use a better estimated number?
BTW…if you have any CSS schools, owning a business will likely result in a higher family contribution.
Thank you all. I will try to estimate. Am I understanding this correctly though–? If I estimate high our aid may go down–changed once our final data is entered? But it I don’t estimate and wait till taxes are actually done then aid we may be eligible for may no longer be available??
What is your situation?
Are you saying that your family income for 2014 was likely much lower than 2013? If so, estimate how much lower and put that in for now. Your parents should have SOME idea!
Or…are you saying that your family income for 2014 was likely much HIGHER than 2013? If so, are you worried that if you estimate too high then you’ll get a “too high” EFC now…and then later when it’s corrected (lowered), then you’ll miss out on aid?
Have you run the NPCs with a couple different income scenarios? If so, are you seeing big differences?
If you decide to error on the side of estimating a lower income to hopefully get more aid, just don’t count on that money if the later corrected numbers end up removing most/all of that aid.
Are you applying to any CSS schools?
I am the parent:) I don’t want to get into particulars but due to the changing of jobs each year income numbers vary. I actually have an accounting background and can try to estimate–but I know enough to know that the numbers could be way off. I don’t see what the benefit of estimating if that is the case.
Well…if you are not low income, and you are not seeking federal work study, SEOG or Perkins loans…AND you can meet the school FAFSA deadlines…then wait until you complete your taxes.
Those three forms of federally funded need based aid have limited funding per campus, and are awarded on a first come, first served basis. Your initial filing date for the FAFSA gets you in the queue.
Even if you use estimates to get an early initial filing date, you WILL need to update ASAP after February 1. Your student’s actual award will be based on your actual figures for 2014.
SO…check the deadlines. If you have February 15 deadlines, and are not seeking any of the limited funding forms of federally funded need based aid…then wait.
I will say…we always completed with estimates…it is very easy to go back into the FAFSA and change the limited number of fields that reflect the 2014 tax return info, change the filing status, and resubmit. Takes all of ten minutes.
The thought is that getting your fafsa done with estimates early reserves your place in line for aid with limited funding. You use actual asset values at this time. Later, when you update with actual income/tax info it doesn’t change your place in line. Aid based on fafsa will be adjusted for the actual numbers when you update.
Thank you! I didn’t realize filing now held our place in line–that’s an important point. Should I also estimate on the CSS? Or if I can meet the deadlines should I just wait?
If you can wait to do the Profile and not miss the deadline…wait. You cannot update the Profile online…a PITA.