We are currently living overseas (long term assignment) and renting our house in the USA. (If we submit the FAFSA now, we have to show the value of the home as an asset.) We will repatriate to the USA in Jan/Feb timeframe and establish residence in our house at which point we will not have to show the value of the house as an asset. Further, we will have to buy a car (or two), further reducing our assets.
I know we are advised to submit the FAFSA (2020-2021) as early as possible. What does this really mean? Are we really risking significant financial aid by waiting 4 months until February? Our assets will be significantly lower if we wait. Trying to understand the tradeoffs here so we can make a good decision,
Thanks, Sybylla. Our income is quite low. Our assets are not that high either - the house about 170K, other assets significantly less. We are retired, upper 60’s, on social security.
The only things you might miss out on are forms of federally funded aid that have limited funding per college campus. In those cases, the early bird catches the worm.
Federal work study. But if your kid doesn’t get a work study award, they can always apply for a regular job.
SEOG...this grant has limited funding per college campus, but some places don’t have it at all.
Are you looking at colleges that guarantee to meet full need for all accepted students?
Does your child possibly have the stats (GPA, and SAT or ACT score) to qualify for significant merit aid?
If this was a long term assignment, is your child actually instate for tuition at her target schools? Do you have to reestablish residency in your home state? Feb to fall is adequate for that?
All good points, thanks! We are waiting on a residency ruling from the university now (we are optimistic, based on the particulars of our situation.) And, we are already counting on a good portion of merit aid based on her test scores (probably 50% tuition.)
Our situation is a bit complex (long story), but bottom line, we are quite limited in our ability to pay for her education. The university is in the same city that our home is in, so we don’t have to worry about room and board.
FSEOG has limited funding per college campus. It is awarded on a first come first served basis.
Waiting could very well mean your kid won’t get this award, but it’s also possible that if you apply before you move back into this home as your primary residence, she wouldn’t qualify anyway.
Is there some reason why you didn’t move back sooner?
Can you pay the other 50% of her tuition…assuming she gets the instate rate?
If you wait you might miss some funds, like an SEOG. However, if you file now and have $170k in assets (house) plus bank accounts with money for the cars, so say $200k in assets, your EFC is going to be over $10k, so unlikely to get any SEOG or Pell grant. If you wait, you might get some. The Pell grant doesn’t run out and you could file even after she starts school and still get that and the loans.
The SEOG is not normally a big amount. Work study tends to be given out quickly at big universities, but there is a second chance once school starts if others turn it back in. Also, some schools have a priority deadline for FAFSA, so if you meet that (Jan? Feb?) you’ll be good. Those schools don’t start issuing SEOG and work study until after the priority deadline.
IMO, you aren’t risking much by waiting, and you may gain some. If you don’t get the instate tuition, will she take a gap year? That will solve a lot of this indecision.
This is so helpful, thanks all! I am asking the financial aid dept at the university the same questions - it will be interesting to hear what they say. The university’s deadline for FAFSA is April 1st.
Actually, we are in kind of a “gap year” now. I manage an NGO in an Asian country, and we have already put off going back to the USA as long as we could to continue our work here as long as possible.
How much is tuition? What is your state? Is the 50% merit guaranteed? Will they allow merit and FA to stack (Unlikely). Are you hoping for enough aid for her to dorm or is living at home and commuting a solid plan? Is there only one school in play?