Frequently Asked Questions

Paying for College
1

<p>OK…here are the first 10 Frequently Asked Questions.</p>

<p>I would suggest that folks who want to add to, or amend any answer (fine with me if folks add info or provide more accurate answers) copy the questions and paste them into your post, and then add the info before you hit the send button.</p>

<p>Here goes:</p>

<li>Can I be considered independent for Financial Aid? </li>
</ol>

<p>Not usually…in most cases, undergraduate students are dependent for financial aid purposes.
If you can answer yes to any of these questions, you can be considered independent for financial aid purposes: Are you married? Are you the parent of a child you support? Are you over the age of 25? Are you a veteran? Are you an orphan? Are you a ward of the court? Do you have a bachelor’s degree?</p>

<p>Financial aid independence is VERY different from independence for tax purposes.</p>

<li>Why does FA consider my stepparents income and how can I get around that? </li>
</ol>

<p>Financial aid computes an expected FAMILY contribution. Your stepparents are members of your family and are contributing to the financial well being of the family in general because they have married one of your parents. </p>

<p>If your non-custodial parent is remarried, you should consider applying to FAFSA only schools if you don’t want to include the income/assets of the non-custodial parent and spouse.</p>

<p>For the FAFSA, both parent and step parent must report. NO EXCEPTIONS.</p>

<li>Do I have to meet the deadlines…and what are they? </li>
</ol>

<p>Yes…you should meet the deadlines. You need to check EACH COLLEGE website for the deadlines for the forms you need to complete. The deadlines are not the same for all schools. Do NOT miss DEADLINES.</p>

<li>If my school requires the Profile do I have to do it?</li>
</ol>

<p>Yes. If your school requires the Profile, they will not process your financial aid without receiving it.</p>

<li>How can I get instate tuition for a state in which I don’t reside?</li>
</ol>

<p>In most cases, you can’t. Your state of residency for tuition purposes for undergrads is almost always the state in which you and your parents reside and pay taxes. </p>

<p>For more information, look at each school’s website for the specifics about establishing instate residency. It’s not as easy as just moving to the state. AND no, you can’t establish residency for instate tuition purposes by living with a friend or relative in another state…or while you are attending college in that state.</p>

<li>What is my EFC on the Profile?</li>
</ol>

<p>Profile does not compute an EFC. The information on the Profile is sent to the colleges and the colleges use that information to determine institutional aid awards.</p>

<li>If my family’s income is $300,000, will I get any need based aid?</li>
</ol>

<p>Probably not. </p>

<li>How do I meet a deadline for the FAFSA/Profile that is before the end of January when our taxes are not done?</li>
</ol>

<p>You will file using your best estimates of your income/taxes for the correct tax year. Then when you complete your taxes, you will amend the FAFSA and Profile. You amend the FAFSA online, and the Profile by hand.</p>

<li>Where can I “hide” my assets so I don’t have to report them?</li>
</ol>

<p>Be honest. If you have assets, you MUST report them on the financial aid applications. Not doing so jeopardizes your financial aid prospects AND your admission to the colleges.</p>

<li>Will I get financial aid from (fill in any school)?</li>
</ol>

<p>There are many variables in the awarding of financial aid. There are specifics for need based federal aid, but beyond that, there is no way for anyone here to predict your financial aid award. You can use one of the EFC calculators, doing both the FM (federal methodology) and the IM (institutional) to get a guestimate of what your family contribution might look like.</p>

2

<p>This should help some people. Bump.</p>

3

<ol>
<li>Can I be considered independent for Financial Aid? </li>
</ol>

<p>Not usually...in most cases, undergraduate students are dependent for financial aid purposes.
If you can answer yes to any of these questions, you can be considered independent for financial aid purposes: Are you married? Are you the parent of a child you support? Are you over the age of 25? Are you a veteran? Are you an orphan? Are you a ward of the court? Do you have a bachelor's degree?</p>

<p>Financial aid independence is VERY different from independence for tax purposes.</p>

<ol>
<li>Why does FA consider my stepparents income and how can I get around that? </li>
</ol>

<p>Financial aid computes an expected FAMILY contribution. Your stepparents are members of your family and are contributing to the financial well being of the family in general because they have married one of your parents. </p>

<p>If your non-custodial parent is remarried, you should consider applying to FAFSA only schools if you don't want to include the income/assets of the non-custodial parent and spouse.</p>

<p>For the FAFSA, both parent and step parent must report. NO EXCEPTIONS.</p>

<ol>
<li>Do I have to meet the deadlines...and what are they? </li>
</ol>

<p>Yes...you should meet the deadlines. You need to check EACH COLLEGE website for the deadlines for the forms you need to complete. The deadlines are not the same for all schools. Do NOT miss DEADLINES.</p>

<ol>
<li>If my school requires the Profile do I have to do it?</li>
</ol>

<p>Yes. If your school requires the Profile, they will not process your financial aid without receiving it.</p>

<ol>
<li>How can I get instate tuition for a state in which I don't reside?</li>
</ol>

<p>In most cases, you can't. Your state of residency for tuition purposes for undergrads is almost always the state in which you and your parents reside and pay taxes. </p>

<p>For more information, look at each school's website for the specifics about establishing instate residency. It's not as easy as just moving to the state. AND no, you can't establish residency for instate tuition purposes by living with a friend or relative in another state...or while you are attending college in that state.</p>

<ol>
<li>What is my EFC on the Profile?</li>
</ol>

<p>Profile does not compute an EFC. The information on the Profile is sent to the colleges and the colleges use that information to determine institutional aid awards.</p>

<ol>
<li>If my family's income is $300,000, will I get any need based aid?</li>
</ol>

<p>Probably not. </p>

<ol>
<li>How do I meet a deadline for the FAFSA/Profile that is before the end of January when our taxes are not done?</li>
</ol>

<p>You will file using your best estimates of your income/taxes for the correct tax year. Then when you complete your taxes, you will amend the FAFSA and Profile. You amend the FAFSA online, and the Profile by hand.</p>

<ol>
<li>Where can I "hide" my assets so I don't have to report them?</li>
</ol>

<p>Be honest. If you have assets, you MUST report them on the financial aid applications. Not doing so jeopardizes your financial aid prospects AND your admission to the colleges.</p>

<ol>
<li>Will I get financial aid from (fill in any school)?</li>
</ol>

<p>There are many variables in the awarding of financial aid. There are specifics for need based federal aid, but beyond that, there is no way for anyone here to predict your financial aid award. You can use one of the EFC calculators, doing both the FM (federal methodology) and the IM (institutional) to get a guestimate of what your family contribution might look like.</p>

<ol>
<li> How can I send the FAFSA to more than 10 schools?</li>
</ol>

<p>Send it to the first 10, wait a few days, delete the first 10 schools, add the others and send.</p>

4

<ol>
<li>Can I be considered independent for Financial Aid? </li>
</ol>

<p>Not usually...in most cases, undergraduate students are dependent for financial aid purposes.
If you can answer yes to any of these questions, you can be considered independent for financial aid purposes: Are you married? Are you the parent of a child you support? Are you over the age of 25? Are you a veteran? Are you an orphan? Are you a ward of the court? Do you have a bachelor's degree?</p>

<p>Financial aid independence is VERY different from independence for tax purposes.</p>

<ol>
<li>Why does FA consider my stepparents income and how can I get around that? </li>
</ol>

<p>Financial aid computes an expected FAMILY contribution. Your stepparents are members of your family and are contributing to the financial well being of the family in general because they have married one of your parents. </p>

<p>If your non-custodial parent is remarried, you should consider applying to FAFSA only schools if you don't want to include the income/assets of the non-custodial parent and spouse.</p>

<p>For the FAFSA, both parent and step parent must report. NO EXCEPTIONS.</p>

<ol>
<li>Do I have to meet the deadlines...and what are they? </li>
</ol>

<p>Yes...you should meet the deadlines. You need to check EACH COLLEGE website for the deadlines for the forms you need to complete. The deadlines are not the same for all schools. Do NOT miss DEADLINES.</p>

<ol>
<li>If my school requires the Profile do I have to do it?</li>
</ol>

<p>Yes. If your school requires the Profile, they will not process your financial aid without receiving it.</p>

<ol>
<li>How can I get instate tuition for a state in which I don't reside?</li>
</ol>

<p>In most cases, you can't. Your state of residency for tuition purposes for undergrads is almost always the state in which you and your parents reside and pay taxes. </p>

<p>For more information, look at each school's website for the specifics about establishing instate residency. It's not as easy as just moving to the state. AND no, you can't establish residency for instate tuition purposes by living with a friend or relative in another state...or while you are attending college in that state.</p>

<ol>
<li>What is my EFC on the Profile?</li>
</ol>

<p>Profile does not compute an EFC. The information on the Profile is sent to the colleges and the colleges use that information to determine institutional aid awards.</p>

<ol>
<li>If my family's income is $300,000, will I get any need based aid?</li>
</ol>

<p>Probably not. </p>

<ol>
<li>How do I meet a deadline for the FAFSA/Profile that is before the end of January when our taxes are not done?</li>
</ol>

<p>You will file using your best estimates of your income/taxes for the correct tax year. Then when you complete your taxes, you will amend the FAFSA and Profile. You amend the FAFSA online, and the Profile by hand.</p>

<ol>
<li>Where can I "hide" my assets so I don't have to report them?</li>
</ol>

<p>Be honest. If you have assets, you MUST report them on the financial aid applications. Not doing so jeopardizes your financial aid prospects AND your admission to the colleges.</p>

<ol>
<li>Will I get financial aid from (fill in any school)?</li>
</ol>

<p>There are many variables in the awarding of financial aid. There are specifics for need based federal aid, but beyond that, there is no way for anyone here to predict your financial aid award. You can use one of the EFC calculators, doing both the FM (federal methodology) and the IM (institutional) to get a guestimate of what your family contribution might look like.</p>

<ol>
<li>How can I send the FAFSA to more than 10 schools?</li>
</ol>

<p>Send it to the first 10, wait a few days, delete the first 10 schools, add the others and send.</p>

<ol>
<li>Do I have to list the value of my parents' retirement accounts as assets?</li>
</ol>

<p>For the FAFSA, you do NOT include the balance IN authorized retirement accounts as assets. These would include IRAs. 401K, 403B, TSA, SEP etc. The amount your parent contributes for the tax year of the FAFSA you are completing is added back in as income....but the balance IN the account is not.</p>

<p>For the Profile, it is my understanding that some schools do ask for the balance in retirement accounts, but no one seems to know how or if they use them.</p>

5

<p>BUMP...because some of these questions are being asked in new threads....perhaps the answers are here. If not, others can add to the questions and answers.</p>

<ol>
<li>Can I be considered independent for Financial Aid? </li>
</ol>

<p>Not usually...in most cases, undergraduate students are dependent for financial aid purposes.
If you can answer yes to any of these questions, you can be considered independent for financial aid purposes: Are you married? Are you the parent of a child you support? Are you over the age of 25? Are you a veteran? Are you an orphan? Are you a ward of the court? Do you have a bachelor's degree?</p>

<p>Financial aid independence is VERY different from independence for tax purposes.</p>

<ol>
<li>Why does FA consider my stepparents income and how can I get around that? </li>
</ol>

<p>Financial aid computes an expected FAMILY contribution. Your stepparents are members of your family and are contributing to the financial well being of the family in general because they have married one of your parents. </p>

<p>If your non-custodial parent is remarried, you should consider applying to FAFSA only schools if you don't want to include the income/assets of the non-custodial parent and spouse.</p>

<p>For the FAFSA, both parent and step parent must report. NO EXCEPTIONS.</p>

<ol>
<li>Do I have to meet the deadlines...and what are they? </li>
</ol>

<p>Yes...you should meet the deadlines. You need to check EACH COLLEGE website for the deadlines for the forms you need to complete. The deadlines are not the same for all schools. Do NOT miss DEADLINES.</p>

<ol>
<li>If my school requires the Profile do I have to do it?</li>
</ol>

<p>Yes. If your school requires the Profile, they will not process your financial aid without receiving it.</p>

<ol>
<li>How can I get instate tuition for a state in which I don't reside?</li>
</ol>

<p>In most cases, you can't. Your state of residency for tuition purposes for undergrads is almost always the state in which you and your parents reside and pay taxes. </p>

<p>For more information, look at each school's website for the specifics about establishing instate residency. It's not as easy as just moving to the state. AND no, you can't establish residency for instate tuition purposes by living with a friend or relative in another state...or while you are attending college in that state.</p>

<ol>
<li>What is my EFC on the Profile?</li>
</ol>

<p>Profile does not compute an EFC. The information on the Profile is sent to the colleges and the colleges use that information to determine institutional aid awards.</p>

<ol>
<li>If my family's income is $300,000, will I get any need based aid?</li>
</ol>

<p>Probably not. </p>

<ol>
<li>How do I meet a deadline for the FAFSA/Profile that is before the end of January when our taxes are not done?</li>
</ol>

<p>You will file using your best estimates of your income/taxes for the correct tax year. Then when you complete your taxes, you will amend the FAFSA and Profile. You amend the FAFSA online, and the Profile by hand.</p>

<ol>
<li>Where can I "hide" my assets so I don't have to report them?</li>
</ol>

<p>Be honest. If you have assets, you MUST report them on the financial aid applications. Not doing so jeopardizes your financial aid prospects AND your admission to the colleges.</p>

<ol>
<li>Will I get financial aid from (fill in any school)?</li>
</ol>

<p>There are many variables in the awarding of financial aid. There are specifics for need based federal aid, but beyond that, there is no way for anyone here to predict your financial aid award. You can use one of the EFC calculators, doing both the FM (federal methodology) and the IM (institutional) to get a guestimate of what your family contribution might look like.</p>

<ol>
<li>How can I send the FAFSA to more than 10 schools?</li>
</ol>

<p>Send it to the first 10, wait a few days, delete the first 10 schools, add the others and send.</p>

<ol>
<li>Do I have to list the value of my parents' retirement accounts as assets?</li>
</ol>

<p>For the FAFSA, you do NOT include the balance IN authorized retirement accounts as assets. These would include IRAs. 401K, 403B, TSA, SEP etc. The amount your parent contributes for the tax year of the FAFSA you are completing is added back in as income....but the balance IN the account is not.</p>

<p>For the Profile, it is my understanding that some schools do ask for the balance in retirement accounts, but no one seems to know how or if they use them.</p>

6

<p>Love this list....sounds like the questions I have received today :)</p>

7

<p>Common FAFSA Errors to avoid:</p>

<p>Common</a> FAFSA Errors at FastWeb's College Gold</p>

8

<p>From link above:
The FAFSA instructions concerning income earned from work are incorrect. This usually leads to a figure that is too low, which in turn leads to an EFC figure that is too high. To correctly calculate income earned from work, add Box 5 of your W-2 statements to line A.4 or B.6 of Schedule SE. </p>

<p>Is this correct???</p>

<p>my box 5 includes the amount of money I paid to my 401k (this is the Social security wages)
My box 1 does NOT include that money (it is the TAXABLE wages from my paystub)</p>

<p>I list the money paid to my 401K in box 12 in the Untaxed income</p>

<p>Following the directions above would mean I listed that income 2x.</p>

9

<p>The information provided on the link in post 7 is incorrect. FAFSA knows what they are doing....their instructions are correct (not always fair, but correct). The person who wrote the "earned income from work" section obviously knows nothing about the FAFSA or taxes.</p>

<p>Sue, based on what you posted, you are doing it correctly.</p>

10

<p>Thanks for the info. I was pretty sure I was doing it correctly.</p>

<p>The same guy who did finaid.org is responsible for that bad information posted in post #7</p>

<p>Mark</a> Kantrowitz<br>
look at the references to his book and that collegegold website.
I don't know what is going on there. I have sent several emails to various email addresses to have him update the calculator with the 2009-2010 data. He has lost all credibility in my eyes by having outdated info on his website and bad, erroneous info on his other websites. I wouldn't pay a nickel for his book</p>

<p>BAD info freaks me out!</p>

11

<p>Sue are you referring to questions 89-90?</p>

<p>
[quote]
Questions 89-90: This is purely a question of wages. Rather than use the IRS 1040, use the number from Box 1 on your parents' W-2 or your total raw pay from your parents' pay stubs to answer this. Do NOT use adjusted gross income, total tax, or anything other than wages earned from work.

[/quote]
</p>

<p>2009</a> FAFSA Application Guide Step 4</p>

<p>However, here's yet another site that says the FAFSA instructions are incorrect with regards to earned income from work:</p>

<p>FinAid</a> | Financial Aid Applications | Income Earned from Work</p>

<p>I don't have the FAFSA instructions in front of me at the moment, but perhaps the issue is that the errors were on prior years' versions of the FAFSA instructions and they've been corrected for 2009?</p>

12

<p>yes, my problem is with the website that says the fafsa instructions are wrong. They aren't. Using Box 5 from the W-2 isn't correct for many people. It is possible that box 1 and 5 could be the same, but for anyone who puts money in a 401k or has health insurance premiums deducted with pretax dollars, box 1 will be a MUCH lower # than box 5. Box 5 includes amount put into 401k but does not include health insurance premiums. </p>

<p>Box 1 is ALWAYS your earned income. Box 5 as suggested in the 'fafsa mistake website' is rarely equal to earned income. They label it "social security wages' for a reason!</p>

<p>My box 5 has been higher than my box 1 for 10+ years. Using Box 5 is wrong for MOST people. And always would have been.
I don't know what the fafsa instructions said several years ago (this was my 3rd go around)</p>

13

<p>vball,</p>

<p>The FAFSA instructions have always been correct. Heck, FAFSA wrote both the application and the instructions, so they know better than anyone else what information they want to collect. They have never requested box 5 from the W2 because using box 5 would result in the double reporting of your retirement contributions. I've sat in many DOE instruction seminars and the FAFSA (this year and prior years) is right and that website is wrong.</p>

14

<p>I believe you :)</p>

<p>But I also believe that the FAFSA instructions are less than clear in some cases.</p>

15

<p>vball,</p>

<p>That College Gold website information about Errors in Asset Reporting is badly out of date. The "pending" legislation has passed and FAFSA instructions have changed.</p>

16

<p>I'm bumping this thread. Too many people asking the same question.
This is the official info. This is where the answers are to alot of questions.</p>

<p>FAFSA</a> on the Web Table of Contents</p>

<p><a href="http://ifap.ed.gov/efcformulaguide/attachments/111408EFCFormulaGuide0910.pdf%5B/url%5D"&gt;http://ifap.ed.gov/efcformulaguide/attachments/111408EFCFormulaGuide0910.pdf&lt;/a&gt;&lt;/p>

<p><a href="http://studentaid.ed.gov/students/attachments/siteresources/CompletingtheFAFSA09-10.pdf%5B/url%5D"&gt;http://studentaid.ed.gov/students/attachments/siteresources/CompletingtheFAFSA09-10.pdf&lt;/a&gt;&lt;/p>

17

<p>Somebody really should pin this to the top</p>

18

<p>I think this is still needed.</p>

19

<p>One last time for this season.</p>