Reality or fantasy? Is aid even possible?

Paying for College
1

<p>Here's the situation:</p>

<p>My daughter is a high school senior and is applying to colleges. </p>

<p>I am divorced from her mother and remarried. I prepaid a 529 plan (Virginia) for her after my father died in 2002. It covers 4 years tuition and fees at a state university. She'd like to attend UVA. Tuition there is approx. $12,000 tuition and fees, $12,000 room and board per year.</p>

<p>Her mother is hoping for our daughter to be able to get some scholarship money to mitigate the room & board. </p>

<p>Our household income for 2012 was approx, $72,000 with a household size of 5 and about $280k in assets other than our primary residence.</p>

<p>Her mom received a $54k buyout in 2012, on top of her approx. $55k in wages. I don't know about other assets. She has a household size of 3.</p>

<p>Her mom is insisting that one of us complete a FAFSA in order to qualify for a scholarship. I don't believe we need to since it seems unlikely we'd qualify for aid of any kind. A wrinkle: next year my ex- won't get a buyout and my wife starts college herself.</p>

<p>Does anyone have any thoughts on this? Should a FAFSA be completed at all? Given this scenario, is there any likelihood that my daughter will receive any aid to help with room and board?</p>

<p>Thanks.</p>

2

<p>As for “one of us” complete FAFSA, that decision is not “up in the air.” The ONLY parent that can file FAFSA is the parent who has your D the most. If your D lives mostly with your ex, then SHE is the ONLY person who can file FAFSA…not you. </p>

<p>“Scholarship money” is based on merit. Is your ex asking about financial aid…based on need? That’s different. </p>

<p>If your D lives with her mom, then her $100k+ income in 2012 will probably mean no aid other than loans. </p>

<p>Your D can take out a $5500 loan to help cover room and board. She can also work over the summer to help pay. That may leave only a few thousand for you and your ex to cover.</p>

<p>even if your D lives mostly with you, she won’t be able to count your wife on her FAFSA as going to college next year. a student can only count siblings, not parents. </p>

<p>What’s the harm in having your D and her mom file FAFSA? Again, she can get a loan to help pay room and board.</p>

<p>BTW…does UVA ask for NCP info?</p>

3

<p>Once you determine who she lives with most, that parent can fill out a FAFSA estimator to see if it’s worth doing. In case your EFC is too high for most need-based aid, she an still have unsubsidized loans ($5.5K first year, up to 7ish by senior year), but only if FAFSA is filed.</p>

<p>[FinAid</a> | Calculators | Expected Family Contribution (EFC) and Financial Aid](<a href=“Your Guide for College Financial Aid - Finaid”>Expected Family Contribution (EFC) Calculator - Finaid)</p>

4

<p>If that buy out is a one time thing, your ex can request consideration that they remove it from income. Technically “last year’s” income is used to presume what your income will be in the next tuition year. I know of someone who had a drop in income, spoke to the school and in spring of the freshman year the parent provided the new tax return and the school adjusted the base income.</p>

<p>This was not a double $ situation, so I don’t know how that big difference might work, but it is worth asking.</p>

5

<p>IIR, UVA has some of their own special forms in addition to the FAFSA, I remember them asking for things like cars owned, etc. many years ago. Check their website to see what they ask now.</p>

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<p>I remember doing those UVA forms – they wanted so much more info and I believe they offered us a loan of $1000.</p>

7

<p>Lots of good info here. Yes, UVA does require PROFILE as well as FAFSA. Check if you need to file as the non custodial parent, which you may have to do. Only the mother has to file the FAFSA, and her spouse if she has remarrried, if the student lives with the mother more than with you. Otherwise, yes, you should complete both the PROFILE and FAFSA.</p>

<p>Though your DD may not get any aid from UVA this year, she would be eiligble for STafford loans and your Ex and you would be eligible for PLUS direct loans once you complete FAFSA. I agree that you are not likely to get any grant money, but you never know what scholarships your DD may be encouraged to apply for that require a FAFSA.</p>

8

<p>Thanks, CPT, doing the Profile is a change from many years ago when we did the UVA forms, then it was FAPSA plus their own form</p>

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<p>Complete the forms for UVA. The school does guarantee to meet the need of all accepted students. They will use the FAFSA AND Profile to determine your daughter’s financial need.</p>

10

<p>

</p>

<p>Sorry, that is a little misleading.
The operative word is need.
The school determines that.
And there probably isn’t any “need” in this case.</p>

<p>[U.Va&lt;/a&gt;. Financial Aid - Determining Need](<a href=“http://www.virginia.edu/financialaid/determine.php]U.Va”>http://www.virginia.edu/financialaid/determine.php)</p>

<p>Also note:</p>

<p>*"Divorced or Separated Parents of Undergraduate Students</p>

<p>In cases where parents are divorced or separated, the University expects both custodial and non-custodial parents to contribute to their children’s educational costs …"*</p>