<p>I understand about the parents filling out the Fasta forms and thier income, but what about if your son or daughter worked during that year, I imagine their income also needs to be recorded? Does their income count in with the Parents --making it more to be recorded on the FASTA form? And is thier something about making less than $50,000 and needing MORE forms , information filled out --if you are over the $50,000 threshold for income on the Fasta? For those who have been through all of this, please help. We are teetering near the $50,000 mark for our family. With the 401K contributions taken out, it should be below $50,000. Please give me advice. Thank you all.</p>
<p>There are separate lines for parent income and kid income. Kid income from work is counted. 401K contributions are counted in the year the income is earned and placed in the 401K, but whatever is in the 401K is not an asset for FAFSA purposes. Look at the books listed in the “Financial Aid” section of the College Confidential website, some of them are very informative; just make sure you have the most up to date edition.</p>
<p>OK, keep in mind that the system is VERY complicated. But in a nutshell -</p>
<p>Both parent and student income and assets must be reported on the FAFSA (not Fasta) forms. The calculations consider that about 20% of student’s income/assets are available for college, while about 5% of parental income/assets are available for college. (That’s because the student is not self-supporting, and the parents are!) I believe, however, that the first $3,000 of student earnings is “protected” and not considered as being 20% available.</p>
<p>What you’ve heard about the $50,000 issue has little to do with FAFSA. Some schools have announced that those earning $40,000 or less will receive full financial aid; some schools have eliminated loans for those families; some have eliminated loans for all students. That has nothing to do with FAFSA, which deals with federal money; these commitments are based on the schools’ own funds. And these schools tend to be the most competitive to get into (Harvard, Princeton, Amherst, etc.)</p>
<p>For most private schools (including those mentioned above), families must file, in addition to FAFSA, the CSS Profile. That is a much more detailed form, looking for a lot more information. The determination of the family’s EFC (“Expected Family Contribution”) is different for the Profile than it is for the FAFSA.</p>
<p>A good place to start on learning the ins and outs of the system is [FinAid</a>! Financial Aid, College Scholarships and Student Loans](<a href=“http://www.finaid.org%5DFinAid”>http://www.finaid.org). And you can also begin playing with the FAFSA at [FAFSA4caster</a> - U.S. Department of Education](<a href=“http://www.fafsa4caster.ed.gov%5DFAFSA4caster”>http://www.fafsa4caster.ed.gov).</p>
<p>Good luck!</p>
<p>The 401K contribution won’t lower income for 2007, but if you make under $50K and meet some other guidelines (i.e. what tax form you use or if you qualify for a federally funded program like reduced lunch), you may qualify for the Simplified Needs Test. The benefits of qualifying for the Simplified Needs Test is that they won’t assess your assets in determining your EFC.</p>
<p>Ok, first my son wants/plans on going to a state school, not one of those CSS profile schools. We always use 1040A tax form. So you can’t deduct your 401 Contribution from FAFSA ?? Here I thought I read that is not included before. Oh My. If our income must be put on that form BEFORE the 401 K, it will most likely be over $50,000 for next year, when I need to do this FAFSA. We have 6 kids. We ARE eligibe for “reduced lunches” at school. We do not get any form of welfare, only the reduced lunches and “wic” for my youngest child. So if my son gets a job, even if he only makes $1000 for the whole year, he must report this, but as long as it is under $3,000, they will not take 20% ? Am I understanding this correctly? And whatever he makes must be reported with OUR income --so if , by chance, my husband made less than Grossing $50,000 – his income would bring it up over that mark----which could keep us from the simplified needs Test? What is the best way to muddle through all of this confusion, recommend any books for those who are close to the cut off (lower income to middle income) paying for college? Did most of you visit a Guidance counselor for this information. DId most of you have your teens work before College? How important is this today? I know I worked while I was in school but I had a car. We are not ready to get our son a car, which means we have to haul him around and we live far from town, which takes alot of gas & time after he is just making Min wage, then alot of these jobs only give you 3 or 4 hours to work a night. Just not sure it is worth the hassle. BUt if working before College HELPS him in the long run --if this says alot to employers, Then the hassle might be worth it. I just don’t know, too many factors to weigh. If a teen does NOT work before College, but is involved in many activites (example, my son is in 2 youth groups, karate, cross country & Track)…Can any of these things be listed on a Resume , or will it just have to remain BLANK as you have not had a Literal Paycheck? He does volunteer every year for the “Carpenters Project” and helps some older folks in Church, cutting grass and odd jobs, but again, this is all volunteer things with no paycheck. Can this sort of thing be put on a Resume? Thank you all for your help</p>
<p>Here’s the definition of who qualifies for a Simplified Needs Test:
[FAFSA</a> - Free Application for Federal Student Aid](<a href=“http://www.fafsa.ed.gov/hera.htm]FAFSA”>http://www.fafsa.ed.gov/hera.htm)</p>
<p>Note that the quote does say 2006, because the 2007 year forms (for school year 2008-2009) are not available until January 1. The definition should remain the same, I believe. It looks like you will be able to qualify for the Simplified Calculations, if you and your H earn less than $50,000.</p>
<p>I strongly suggest that you go to [FinAid</a>! Financial Aid, College Scholarships and Student Loans](<a href=“http://www.finaid.org%5DFinAid”>http://www.finaid.org) and read as much of the information there as you can.</p>
<p>As to whether your son should work, aside from the financial aid issue - I know many kids who were busy with ECs and didn’t have paid jobs who had excellent admissions results.</p>
<p>Volunteer work can definitely be put on a resume or in the application, and will stand him in good stead. ECs certainly go on a resume or in the application.</p>
<p>Good luck to him, and you!</p>
<p>Thank you for this information, I guess I am confused about the $50,000 limit thing, because a family can earn more than $50,000 and still get Wic and reduced lunches. I know you can make up to $63,000 a year and still be eligible for WIC if you have a family of 8. Go here for guidelines [Health:</a> WIC Eligibility Requirements](<a href=“http://www.dsf.health.state.pa.us/health/cwp/view.asp?A=179&Q=237114]Health:”>http://www.dsf.health.state.pa.us/health/cwp/view.asp?A=179&Q=237114)
SO I wonder what the determining factor is… the total family Grossing $50,000 cut off, or the eligibility of these programs?<br>
Wonderful to hear being able to put volunteer stuff on a resume. I wasn’t meaning about looking good for admissions.<br>
I was just meaning when he finally looks for that job --at the end of a college education, if volunteering is enough for Employers to give you a try. I do want him to do WORK STUDY at all costs if he is able. But someone told me, many kids are not able to get this?? What detemines who gets Work study??<br>
Another question… How does Tax refunds affect the FAFSA ? I read this somewhere and didnt’ know they ask about your Tax refunds… “Avoid tax refunds. Paying more taxes than you owe in a given year will ultimately result in a refund the following year. Refunds are viewed as income. Additional income raises your EFC and will reduce the amount of money you are eligible for in the form of financial aid. Take note of the levels of taxes currently withheld and make any adjustments necessary”. Any idea? Thank you all for your help!</p>
<p>I may be wrong – but I was under the understanding that if you recieve an income tax refund from state taxes (because you overpaid) that you can’t file a 1040A – which means you can’t meet the requirements of the simplified needs test. You have to be eligible to file a 1040EZ or 1040A to meet the simplified needs test.</p>
<p>hsmomstef</p>
<p>I think they changed it last year. You can qualify for the Simplified Needs Test if you are eligible to file 1040EZ/A OR if you are on a federally funded program (such as reduced lunch).</p>
<p>I don’t have the documentation in front of me, but that is what I recall.</p>
<p>Work study is a job during the school year, part of his aid package may include it.
I think it is good that you are looking at different ways to make the process easier but keep in mind that each year your your aid package may change. And if your income is that close to the $50,000 cut off this year, it is possible to go over in future years (if your husband gets a raise for example, or if you get a job) and then the package may be adjusted.</p>
<p>two points that I think bear worth mentioning – </p>
<ol>
<li><p>If you are only looking at FAFSA schools, the only thing that the “simplified means test” will mean to you is that assets are not counted. FAFSA doesn’t count retirement accounts nor home equity (for anyone) and an asset protection allowance is granted based on the oldest parent’s age. Unless you have a ton of money sitting around in cash/stocks/mutual funds/CDs – I am not sure you have that much to be worried about. For instance, the asset protection allowance for a two parent family with the oldest parent being 45 years old is over $43,000. If you have over $45,000 in accessible cash, then I can see your concern – but if that is not the case, it won’t make a difference.</p></li>
<li><p>FAFSA only schools are notorious for not meeting 100% need – so even with an EFC of $0, you may well be expected to pay a considerable sum of money in order for your son to attend college. Only those schools that meet 100% demonstrated need will provide a financial aid package that is meant to cover all costs. This will be something you need to check out very carefully – many low-income families have found that a private school that meets 100% demonstrated need will be cheaper than a state school.</p></li>
</ol>
<p>one final note – it is highly unlikely that a student’s work experience while in high school will play any part in the hiring decision of an employer after your son graduates college. The employers will be looking to see what you son did during college – and any work (especially in his field of interest) during the summer will be looked at very favorably.</p>