FAFSA--undecided

<p>So here it is, January, time to do our first FAFSA. We have done a zillion calculators and estimates and KNOW we will not qualify for aid. As far as I can tell on cursory review, we won't qualify for any school-based aid from anyplace my D has been accepted. Our state gives no money, and again, we wouldn't qualify for need-based anyway.</p>

<p>My husband feels pretty strongly that since we have 0% chance of getting anything we should just bag the whole thing. Doesnt like the idea of putting this personal information in so many hands (even though I think nothing is truly private any more). Other than a catastrophic god-forbid type of tragedy, our situation isn't likely to change enough to qualify for aid (even though we laugh at how much they all think we have laying around to pay for college).</p>

<p>Worth it to file anyway? And why? What's the actual upside? It shouldn't ever affect merit based awards, right?</p>

<p>There are schools which require FAFSA even for merit aid. Check the Financial Aid page for each of the websites.</p>

<p>Filing FAFSA for freshman year keeps your options open for all 4 years. For example, unless you’re 100% sure your situation will not change in the next 5 years, you should file FAFSA for freshman year (and each subsequent year). Colleges take a dim view of a student suddenly needing aid two or three years in.</p>

<p>Also, if you want your student to be eligible for federal loans, you’ll need to file FAFSA. These loans are far more advantageous than private bank loans. Note that you don’t need to decide Yea or Nay on the loans until the student enrolls in the fall, but you apply for them via FAFSA.</p>

<p>I understand the concern about your information being “out there” but that’s unfortunately part of modern life. I never felt that my information was in particular danger by filing FAFSA. I figure that a FAFSA security breach would end up in congressional hearings, which is certainly something they don’t want. And the colleges with whom the FAFSA data is shared have a definite interest in protecting your information.</p>

<p>I can see three reasons for filing:

[ul]
[<em>] You want one of those unsubsidized loans. However, these are very expensive loans, in my opinion. If your financial situation is solid, you can do much better than that.
[</em>] You want to protect yourself in case there’s a change in your financial circumstances. Some schools may not allow you to apply later, based on what I’ve read here.
[li] You’re at one of the extremely few schools that actually require financial info to be considered for pure merit scholarships. Despite great effort, we’ve managed to identify perhaps as many as five such schools here - it’s truly rare. However, many folks don’t understand the difference between true merit aid and need-based aid with a merit component. The schools aren’t very clear about this, because they know that people like to “win a scholarship.” Even many of the frequent posters here are befuddled by this.[/li][/ul]
I think your husband is very smart to be concerned about providing personal financial information without receiving any value in return. Beyond the obvious security issues, there’s a matter of principle involved.</p>

<p>Wiser to make an application.
Could save you money.
Definitely will make your cash flow better.
Will improve credit scores if you begin making immediate payments.
No prepayment penalty.
Many payment programs and even then the programs can be changed at your request.
Low fees.</p>

<p>We used the programs to even out cash flow and to preserve UGMA. In our time we had inverted interest rates–loan interest was cheaper than investment/savings interest. We were full pay family.</p>

<p>The loans allowed DS to have a money in UGMA on graduation, which allowed him options and choices. Also applies to us, the parents.</p>

<p>You MAY get work-study for your kiddo, which is what many of the best campus jobs are (if you’re not work-study, you can’t get those jobs). Also the things that others posted above.</p>

<p>That said, we did NOT file the FAFSA. We completed the worksheet & it was clear we would NOT qualify for FAid. The U that S attended gave merit aid w/o us having to file anything about our finances. We did not want to file and generally get an extension & rarely file taxes until August anyway. We have no regrets & will be paying the last of the many, many years of tuition (first S & now D) over the next 5 months–YIPPEE!</p>

<p>Our S was able to get a research position WITHOUT our filing any financial info (EE). D lost her campus job when they eliminated her position & replaced it with a work-study position. Otherwise, do not feel we have lost much not applying for FAid & filing all that paperwork.</p>

<p>Florida requires FAFSA even for their state-run Bright Futures scholarships. Any merit money requires FAFSA as of last year.</p>