So, here’s my situation.
My parents are the typical Asian household, they barely understand or speak any english. I have never filed for FAFSA, as I have had no experience with it whatsoever. My question is that since i have been recently accepted to an in-state university (University of Maryland), my parents told me they would not be able to help me pay for my tuition. I have looked over FAFSA, and on my parents tax information we might be able qualify for a grant(?) (Household of 6, 2 going to college, they make $50,000/yr). But a question on the website stated that they wanted to know how much is in their savings/checking/cash accounts. As my parents have “more than enough” money saved to help me pay for school, we are worried I might not be able to get any sort of aid. I am in a dilemma, and don’t know what to do next. My parents are also not the encouraging type of people so they have told me to figure it out myself. They keep telling me it is pointless since they “believe” I would not be able to get any sort of grants or loans. Should I just file anyways?? Any help is appreciated!
If your parents can afford to pay for college but refuse to then you will not get any aid from the university. You may qualify for Pell grants and deferral loans based on their current income.
@TomSrOfBoston Would I be able to get loans off of FAFSA?
- You will at least qualify for a basic federal loan. Everybody does.
- Your parent's savings will be assessed at somewhere between 5 and 6 percent. So, if they have 10,000 in savings at most 600 will be assumed available for spending on college this year.
- You will probably only get federal aid, because state level aid is usually first-come-first-serve and you're really late. Next year apply early!
- If you don't have money and your parents will neither give you money nor apply for assistance, you are not going to college.
There is no harm in filling out the forms, assuming it is not too late. I don’t know about your particular university, but many give aid to students whose parents make, and save, more than yours. The only way you can find out is to apply.
Are you already in college? Or are you starting college in the fall?
If you parents made $50,000 or under in 2015, then you might qualify for simplified needs test. If your parents filed a 1040A tax form in 2015, or were a dislocated worker, or your family qualified for a federal means tested benefit like free/reduced lunch, then your assets might be disregarded on the FAFSA.
How much does the school cost for tuition, fees, room and board? The maximum Pell is $5920 and student loan is $5500 freshman year. Why won’t your parents help pay for school?
There is not reason not to file. The FAFSA is relatively short and easy to file out if your finances are straight forward. It is free. The only downside is that you have to give personal information. Based on what you wrote, I am guessing you would qualify for a Pell grant (free money) and loans some of which would be subsidized.
When you say that your parents’ income is $50k, does that include income from their assets/investments?
You may not qualify for simplified means if the income from their investments/savings pushes their income up.
Do they own properties? Rent from properties?
Are there 4 kids in the family or are some in the household grandparents, etc?
Even if you qualify for a Pell Grant, and a 5500 student loan, how will the REST get paid??
Is there a school that you can commute to?
what do your parents want you to do about college?? Do they just want you to go to a CC? Or what???
What are your stats and major? Can you still apply somewhere that would give you huge merit??
Is your sibling in college? How is that being paid for?? Or are you a twin?
- Run the NPC Net Price Calculator, found on the college website.
- http://www.financialaid.umd.edu Check for any deadlines. You've missed the priority date, but see if it's not too late.
Oh, you’re a transfer student from a CC. Where did your parents expect you to finish your education?
did you apply to a local univ that you can commute to?
I missed the transfer detail. But, you always start with info the U provides.
@mom2collegekids Yes! Im a transfer student, i paid for all my classes from comm. college. I have a sister who goes to UMD too. Her situation is also like mine, but since she was the first one to go to college my parents helped her pay for one semester. Which is roughly $11,000. They told us by next semester they wanted us to figure something out ourselves. And then nearest university to us is actually the university I would be attending this fall.
and also, my parents own multiple properties as well. They are just worried I wouldn’t be able to get any sort of aid because of the amount of money they have saved up.
So they told me they have about $200,000 saved up. I dont know how that would factor in with anything.
If any of that $200k is in a qualified retirement account, it is excluded from the total reported on FAFSA.
All you can do is complete the FAFSA form and see if you qualify for any aid or loans. Talk to the FA office.
Your parent multiple properties could,be an issue in terms of getting need based aid. The FAFSA will REQUIRE the equity properties other than your home be listed as assets. If they are rental properties, the rents will be treated as income.
Regardless…you can get a $7500 student loan for your third year in college…and your fourth year in college.
The $200,000, of in regular savings, will add $11,200 to your family contribution per FAFSA.
Complete the fafsa and submit it ASAP. Hen wait and see…honestly, I think you have missed deadlines for any aid awarded by UMD…but apply and see.
Really…that’s all you can do.
In the meantime…look for a low cost option to which you can commute.
Yes, fill out the FAFSA. You will get $7500 in loans (for a junior). Don’t know if you will get any FA from UMD with that high amount of savings and properties, but worth a try, esp. if sister is still in college. But you must fill out the FAFSA to get the $7500 loan.
You will still need $4,000 extra to pay for tuition. Will your parents give or loan you that amount? Or can you earn it?
Hope this all works out for you and your sister.
Back to the original question.
The only loans you can get without co-signers are the federal student loans which require that you file the FAFSA. I believe there might still be time to borrow 6500 for your sophomore year. For your junior and senior year, you can borrow 7500 each year. That’s it. That’s your loan budget. Without filing the FAFSA, you loan budget is 0. So yes it makes sense to file the FAFSA if you need loans.
Would your parents consider loaning you the money you need? Family loans are generally a very bad idea since it can strain the relationship but maybe it’s an option. Two years at full pay will be a heavy debt loan (maybe not too bad if you are commuting from home). However, maybe the parent will give you better loan terms.
The 200,000 in savings will increase your FAFSA EFC by approximately 10+K.
Yes, with multiple properties and six figures in assets, your parents are going to be expected to contribute to your education. You might have gotten some financial aid anyway with two in college at once. It’s hard to say.
Nevertheless, if your parents will not give or loan any of their money, you have a problem. You can solve part of the problem by getting your federal student loan. Even without parent assistance a student can file the FAFSA for an unsubsidized loan, you just won’t get any grants or subsidized loans.
Then maybe find multiple summer jobs, work while going to school, etc.? How did your parents think you and your sister could pay for this?