<p>Hey, I don't understand much about the fafsa ( or much about the college process if I must be brutally honest). Can I fill it up now or do I have to wait till January? Why do my parents have to fill out their W2's? Do they send these forms with the fafsa? </p>
<p>My parents are in debt about a ~1-2 million, but it was to start a business. Right now the only person with a job is my mom, so we have an income less than 100k. Do I have to show that my dad has a business? If so will fafsa take into account our debt?</p>
<p>Gahhh, I am just so confused on this whole matter. I have a lot more questions, but that all that I can spew for now. Sorry.</p>
<p>Any help insight, frustrations that YOU had to deal with, will all be welcome :)</p>
<p>You can’t complete the 2010-2011 FAFSA until January. The one currently available is for the 2009-2010 school year (started this fall).</p>
<p>The only way it is taken into account is if the debt is against a reportable asset then it reduces the reportable value of that asset. Otherwise FAFSA does not take debt into account.</p>
<p>Yes your dad may has to report he has a business and any income from that business. But if the business meets certain criteria he may not have to report the value of the business assets.
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<p>Your parents have to report the income shown on their tax returns (and most untaxed income if there is any). If they do not do tax returns they would have to use the W2s for income. But with income of $100k+ they will have to do tax returns. You don’t send W2s (or anything else) with FAFSA. However 30% of FAFSAs are required to be verified by the schools. If you are verified you will be asked to provide W2s (and other documents).</p>