Is there any reason to file a FAFSA if we will not get aid?
When I Google this topic, every article says to file regardless of income because some schools may use it to determine merit. At general parent meeting, GC said same thing. But, when I look at schools on S18 list, as far as I can tell from websites, all of them either give no merit (need based aid only) or say they make their own determination. Obviously, not comfortable to bring up at general parent meeting and even a bit awkward to say to GC, but we have been fortunate and make an income where we will not get aid and we have even managed to save enough in a 529 plan to cover at least one year so no need for loans first year. But, we have 3 more years that need to be paid and I would be happy if S18 got some merit. Am I missing something or is there no good reason for us to file the FAFSA? Thanks in advance.
Your HS guidance folks are NOT the ones you should be asking. You should be asking at the colleges…ask THEM if you need to complete the FAFSA for merit aid consideration. They will tell you.
My kids both needed to complete the fafsa and Profile as entering freshmen…for merit purposes. Their schools had this requirement. Neither had to complete them in subsequent years for the merit awards. Both DID complete the fafsa annually so they could take the federally funded Direct Loan each year.
If your income is in the $200,000 a year range, and you have only one kiddo in college…no…you probably won’t get need based aid.
But really…the best place to get your answer about completing the financial aid applications if you want merit only…is with the colleges. They will know…and they will tell you if it’s necessary.
Some schools require you to file FAFSA (or CSS Profile) for merit aid. Also, if you intend your child to borrow in a Direct (formerly Stafford) loan. Otherwise no reason to file.
They should have a box that you can check which would stipulate you will not qualify for need based aid and allow you to skip pretty much all the form other than your name, rank and serial number.
What are you talking about withnthis statement?
Either you complete the forms…or you don’t. You don’t complete them with a caveat that you will not qualify for need based aid.
If a school requires the FAFSA to qualify for merit aid, I think you should be able to stipulate that you will not qualify for need based aid and skip the guts of the form. If they are looking at your income/assets in determining whether to award merit aid, its not really merit aid.
Not qualitying for a Pell grant is not the same as not getting any financial aid. Have you run net price calculators on all your schools?
Also, what happens when that 529 runs out? If you need a loan, then the federal direct student loan has the best terms. If you forego the 5,500 eligibility for freshmen, you will not get extra eligibility to make up for that in subsequent years. Plan your borrowing accordingly.
Finally, are there more kids to put through college? Perhaps you will qualify in the future when a sibling is enrolled. Make sure that the college does not have a policy of not allowing you to apply in future years if you fail to file the FAFSA from the first year.
It is best to make a four year plan for paying for college, not go year by year.
It’s nice that you think this should be the case… but in reality…that’s not how it works. Either you complete the WHOLE FAFSA or you don’t complete it…at all.
I don’t believe you can even submit a FAFSA with a bunch of blank, but required, fields.
All my kids wanted was the Direct Loans. Nothing else. We had to complete the ENTIRE FAFSA to enable them to get those loans.
Submitting a FAFSA with only “name, rank and serial number” accomplishes exactly nothing.
The general consensus is that one reason that some schools require a FAFSA to be filed in order to qualify for merit aid is to make sure that a Pell grant or other government aid isn’t being left on the table. It’s impossible to make that determination without the full completion of the FAFSA.
@thumper1 Your response starts off indicating that you understand the meaning of the word “should” (that it is not how it is but how I think it should be) but then in the rest of your post you seem lose the significance of the word.
I have submitted the FAFSA as well. And yes, you need to complete all required fields. That is what makes them required fields. But they do not need to be required. Its a simple programming matter to change that.
And in your case, I think you “should” be able to complete a much simpler FAFSA if you are only looking for direct loans.
@BelknapPoint Parents/students could stipulate they don’t qualify for Pell grants or other government aid as well (you could even provide income cutoffs and make them certify their income exceeds those cutoffs or even provide their AGI which in many cases would establish no such other aid is being left on the table). And whatever info is needed to make that determination, it isn’t a full completion of the FAFSA in many cases. And you are even noting its the “general consensus” as to why. So we don’t even know. The simplified process would make it easier for colleges as well in terms of processing FAFSA forms.
There’s more that goes into determining if a student is Pell eligible than a specific AGI or income cutoff. In order to stipulate that a student is not Pell eligible, the student/parent(s) would need to plug all the required data into the FAFSA EFC formula and come up with a valid FAFSA EFC. But hey, guess what… there’s an easier way to do this. Complete the FAFSA, submit it, and get an official, accurate answer. This also provides the requesting school with a much higher degree of certainty that the answer is correct.
We do know. If you prefer not to include yourself in this group, I’m interested in hearing what you think the reason is that some schools require the filing of a FAFSA before merit aid will be awarded.
Thanks for the input. I have checked with all of the schools on our list and none require FAFSA for any school-based aid. So, it sounds like FAFSA would be needed for Direct Loan which does not depend on income but is “use it or lose it” each year. Ugh - was hoping to avoid that process…
The process is not that difficult. I understand that with your income you don’t think your son will qualify for any need-based aid, but in most cases there is a good reason for requiring family financial information even when the only objective is getting a direct loan – determining if any part of the loan can be subsidized.
It is not an onerous process, but if you want to be private about your financials then you can absolutely bypass the process. Tons of parents do this because even if say, your DH died tomorrow, the picture won't really change (assuming he is insured). My kids would be way better off financially if we both died LOL. I think my oldest points that out to me every now and again. With a strange glint in his eye. Anyway, it is your call if you know your own financial profile well enough. We have had a school require it for merit consideration, but it was no big deal to us. I assume it is purely data mining and such is the way of the world. Those CDS's need information.
@saillakeerie
I agree with your sentiment. For those who just want an unsub loan, then a bunch of detailed info should not be required. Some people have complicated situations where info is not simply down-loaded or uploaded. Some people own many stocks, bonds, savings accts, CD, properties, trusts, and on and on. They shouldn’t have to list everything if all that is wanted is for their kid to have an unsub loan.
If all you want is the Direct Loan, you can wait to do the fafsa until after acceptances are in. Actually you can wait to see if you want or need it during the academic year. If you do, then complete the FAFSA, and your student will be able to get that loan during the academic year.
I have to add…I agree it would be nice if there was some way to get the federally funded loans without completing a whole FAFSA…but that’s not the way it is. As noted, at this point it’s an all or nothing form. You have to do the whole thing even if you just want the loan…which everyone can get. Agreed…it seems sort of silly…but that’s the way it is.
Why should it be easier for folks to get a loan which is subsidized by the taxpayers i.e. all of us? I cannot imagine another entitlement program where most people would say “heck, just give it to them without asking all these intrusive questions”.
You want a loan which involves public funding- either via a subsidy, a federal guarantee, the ability to have a portion of the loan forgiven in some circumstances, etc- you have to fill out the form. That’s how we all ensure compliance with a federal program and I don’t think it’s at all silly.
You want to finance your kids education with your credit card? That’s on your issuer to determine if you qualify.
Right, wealthy parents are unlikely to access the loan IMO, so this conversation isn’t about wealthy people. I would lend my kid the Staffords equiv over them taking out a loan but I still don’t think the FAFSA is a big deal. Again, truly wealthy people who have interesting financial vehicles are not going to borrow 27K.
If you don’t want to fill out the FAFSA the first year, you could spend the 529 money and then apply for parent plus loans the other 3 years, but those have higher fees and interest rates than the student loans.
Merit given by the college is often renewable for up to 8 semesters if a certain GPA is met.
Some schools can require that you file FAFSA for merit aid, but not all do.
You don’t have to “list” everything. You just have to add up the value of all reportable assets as of the day that the FAFSA is filed. Really, in today’s interconnected electronic environment, for the vast majority of people who will want to take out a federal direct loan, getting all of this data is as close as your phone/tablet/computer. It’s not that hard.