When should I fill out the FAFSA?

Paying for College
1

<p>I'm applying to colleges next year.</p>

<p>Thanks</p>

2

<p>The FAFSA for the next school year (2006-07) can be filed after January 1, 2006. However, it might be available online to fill out before then (sometime in December). You would be able to complete it (as a "will file"...meaning your family will file taxes for 2006) then but can't submit it until January 1. Then once your tax returns are done, you will need to go in and change it to reflect what is on your 2006 tax returns. This, by the way, is very common. Many schools want to see that FAFSA in January and lots of families do the above (will file and amend).</p>

3

<p>Actually, once you file your tax return, you don't have to worry about going back and updating it. FAFSA automatically updates information for you to reflect the new tax returns.</p>

4

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<p>We have been doing the FAFSA for three years and we have had to update the information ourselves after our taxes are filed. The FAFSA is not hooked into the IRS so far as I know.</p>

5

<p>So next year? Alright thanks</p>

6

<p>thumper1: Really? Because we checked the box stating that the values were estimates. After we filed our taxes (approximately two weeks after we filed), I got an e-mail from FAFSA stating information had been updated. When I logged in to see what had happened, the values that were estimated in January were changed to the tax returns.</p>

<p>Is than an anomaly?</p>

7

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<p>We got that email...but it was AFTER one of us went in and amended our FAFSA (post tax filing). Perhaps someone else has info on this. Believe me...I would LOVE to think I don't have to do this...but I did.</p>

8

<p>That's interesting. I wish someone could help us here. It could be possible that since it was my first year doing it, I didn't know about going back and changing the values, and since we had noted on FAFSA that these were estimates, FAFSA might've pulled out our taxes after we filed.</p>

<p>Because I do know that Social Security links to FAFSA and FAFSA does run your TW's (or something like that), so it could be that while double checking, they caught the new taxes.</p>

<p>This, of course, is all speculation. But my family never went back to update the values; the values updated itself.</p>

9

<p>Either someone in your family updated them, or one of the Colleges you applied to updated them. Did one of your colleges ask for verification info in the form of tax returns?</p>

10

<p>Question about the FASFA (didn't feel like making a new topic)</p>

<p>My parents have money stored for their retirement. Does the FASFA take that into consideration, and because of that, will I likely not get any aid? Will colleges then expect my parents to use that money for my school?</p>

11

<p>Retirement money in an IRA or 401k or similar retirement savings plan isn't counted as an asset on the FAFSA (or on the Profile). But if they have retirement funds invested outside of these plans, they
will be counted.</p>

12

<p>So if they have money not in a plan, just in the bank, meant for retirement, it will be counted? Damn...</p>

13

<p>Yeah-- but not all of it. It will be counted like other liquid assets, which get assesed at a max of 5.65% (depending on income), if above the asset protection allowance. So, for example, if your asset protection allowance (which depends on parent's age) is $50K, and they have 90K in liquid assets including the retirement money in the bank, the $40K over the asset protection allowance can be assessed as $40,000 + .0565 = $2,260. </p>

<p>So in this example, $2,260 would the the Parental Asset contribution to the EFC. Could be less depending on parent's income level. And would be significantly less if the retirement money was in an IRA or 401k, instead of in the bank.</p>

<p>But the point is-- the colleges don't expect parents to use all of their liquid assets for college. Just a hunk of it. Ditto student's assets, but they take a MUCH bigger hunk of the student's assets.</p>

<p>So best to get parents assets in a retirement account. And don't put college savings in the student's name.</p>

14

<p>sblake7: You solved the mystery. Thanks. Yes, UC Berkeley did ask that I send a copy of my parents' tax returns to them in early March. Hence in early April, FAFSA sent me that e-mail. So I stand corrected and thanks for helping figure this one out.</p>

15

<p>ASAP!! The sooner after January 1st of your senior year, the better. I made the mistake of waiting until March 1 (the deadline for most colleges when offering aid packages) and lost out on money that I would have acquired if I would have just sent it out earlier. Do it as soon as you can.</p>