Financial Aid Packages

<p>This is probably a dumb question, but when do the financial packages usually come from the colleges? FAFSA and profile are submitted, but not copies of W-2 forms and actual tax returns. Do those need to be submitted first?</p>

<p>To piggy-back that---what if you normally, due to the nature of our business, have to have extensions to file your taxes.</p>

<p>IF you apply ED, finanical aid packages usually come with the acceptance letter or shortly after. If you apply RD, since the common reply date is not until may 1, you will probably get your package in the spring. May schools will ask you for copies of your signed tax forms and w-2s to verify the information you filed on the fafsa/profile.</p>

<p>
[quote]
To piggy-back that---what if you normally, due to the nature of our business, have to have extensions to file your taxes.

[/quote]
</p>

<p>You should really push to get them done early especially if your child is an entering freshman as many schools will not put together a package without copies of your sign tax forms with the w-2s. The deadline for freshman is usually before the april 15 filing deadline (as many RD decisions go out late march /early april). Keep in mind that even the will endowed schools, have financial aid budgets and allocations and once the monies are all used up you could end up with a package that is heavy on loans because all of the "free money" will have been disbursed.</p>

<p>Different colleges send at varying times. Sometimes it came with the acceptance and other times much much later. We just called the respective schools FA office and asked.</p>

<p>Kat</p>

<p>APOL, keep in mind that you can file a return and subsequently file an amended return-- that's what I did the year my son applied to colleges. I didn't intend to do it that way -- it's just that I was in such a rush to get the taxes done for the financial aid applications, that I forgot to include a significant business expense in my schedule C -- when I discovered that, I obviously wanted the benefit so I did an amendment. It was pretty easy, and of course I supplied my son's college with the updated return. </p>

<p>Many colleges will simply accept a copy of your request for extension in lieu of returns - assuming you also provide them whatever other info they seek, such as the previous year's returns and other business records -- but I think it's easiest just to get a return in as early as possible, and go the route of filing an amended return to catch whatever got missed the first time around. </p>

<p>Also -- the earliest you get the material to the colleges the better off you are. I think its a good idea to send a copy of your 1040 to the colleges whether they have asked for it or not -- you will get your financial aid package sooner, and you are less likely to see changes in it later on if you know the colleges had complete information from the start. Also, my daughter's colleges used info from my 1040 to recalculate the FAFSA in a way that was more favorable to us, and qualified her for a Pell grant -- basically, they managed to knock more than $2000 off her EFC because of info on the return that I didn't know was relevant that they pulled from my Schedule A. (That falls under "Professional Judgment"). So I am very glad that they had that info early on, because that really made a huge difference in our favor on the aid calculation.</p>

<p>Calmom, do colleges normally check what the families have done? THat would be a blessing to me as I've never done this before. I think I will take you advice and send 1040 and W2s to the colleges.</p>

<p>Calmom-Thank you for your insight and sharing of your experience. All of my childs schools want the FAFSA/'CSS by 01 Feb---and there is no way on God's Green Earth I can get my taxes done by 01 Feb..I have trouble with the 15th of April...I will talk to my accountant about filing an amended return, and see what is involved.</p>

<p>APOL, you should file a FAFSA with estimated numbers ASAP -- even before doing taxes. Just check the box on the form indicating that your taxes have not been filed yet. Then, I would say just try to get your CPA to get the taxes done by mid-March so that you will be able to get a copy of the returns and amend your FAFSA by the time of the April 1 notification date. You want to get as complete information as possible to the colleges; otherwise your financial aid package can be delayed -- or worse, you could get a tentative package that is not accurate. (For example, if you tell the colleges that your AGI is $65,000 and then after doing your taxes it turns out that the AGI is $85,000, you would see your aid package drop by about $10K -- it's no good to have an offer that doesn't stand up once the real figures are in, because in the meantime you could have turned down a nice merit award from another college).</p>

<p>Zoosermom, I don't understand what your question is when you refer to checking what families have done. Can you clarify?</p>

<p>A bit off-topic, but ties into this discussion: when we send the 1040, can we black out our social security numbers? A few years ago, I wouldn't have thought to ask this. However, identity theft is such a huge issue these days.</p>

<p>The college financial aid office probably needs your social security number as part of their verification process, but it probably would be o.k. to black out all but the last 4 digits on your paper tax return to at least make sure that it can't be picked up by unauthorized people working in their office. But you should check with the college to be sure.</p>

<p>That being said, there's probably not much you can do to protect SS numbers once they are in the college database -- and the college has the right to check your FAFSA against IRS records - so they are going to need the taxpayer ID for that. Also, if your kid gets a work-study job, then of course the SS number is going to be provided for purposes of employment. It would be nice if all college databases were secure, using encryption to protect SS numbers.... but that isn't the case. But while you are stressing out over the number, the reality is that it something that probably can easily be discovered by anyone with $15 to spend on any of the various internet public record search firms. I think at this point it is more important to monitor one's credit regularly and act on the assumption that your social security number is one of those secrets that is not all that closely guarded, though of course you can take some precautions to at least make it a little more difficult for would-be identity thieves.</p>

<p>Yikes, I was just about to go to sleep ... not sure I can now :)!!!</p>

<p>I am not really especially paranoid about it, but I have tried to become more careful, in general. An acquaintance had a work crew from a well-known home improvement company installing windows. Someone from the crew stole info & it's a huge mess to straighten out. I figure that I should be cautious as much as possible.</p>