13 IMPORTANT RULES FOR FILING THE FAFSA IN 2016
IT’S A NEW YEAR AND TAX SEASON IS ALREADY UPON US!
Though most people are worried about how much of a return they’ll be getting, students and parents of students have their own set of issues to worry about, especially when being responsible for the hefty costs associated with college/university. While everyone else is busy filling out 1040s, college students need to go a step further and complete additional paperwork, their FAFSA forms.
FAFSA stands for Free Application for Federal Student Aid. It is the most important application for need-based college financial aid that you will need to fill out this year to get your piece of the pie. Completion is mandatory in order to be considered for a federal student loan, Pell Grant, and other state specific grants.
For those who take the time to fill out those 103 questions, it could mean the difference between barely making it through another semester or having the ability to keep going for a graduate degree. Even more important, understanding the rules and tricks to filling out the form can increase the amount you receive in aid substantially. Below are a few rules that Turning Dreams Into Goals recommend to our clients.
Rule 1 – Apply EARLY! Apply as close to January 2nd of the calendar year when you will matriculate to college or university as possible. January 2nd is the date when the FAFSA is available for submission. For the 2015-16 school year, if filing online, applications must be filed by midnight June 30, 2016 Central Standard Time. Corrections and updates can be made up until September 23, 2016 midnight Central Standard Time.
***Note: Individual deadlines for state aid vary, but most states want FAFSAs to be filed as soon as possible after January 1.
Rule 2 – If the student applying to FAFSA is not emancipated, include the financial information of the guardian(s) or parent(s) who the child lives with the most.
Rule 3 – Check with the schools where you are applying to inquire whether or not additional forms are required to be considered for financial aid. This information is often found on a college or university’s financial aid website.
Rule 4 – Remember, your financial aid award package for any given school may include both federal loans and grants. You DO NOT have to accept any loans offered to you. However, note that if you must accept loans to continue your education, go the federal loan route. It is better.
Rule 5 – Money runs out! It is very important to fill out and submit your FAFSA form early.
Rule 6 – Do not wait until university/college admission letters roll in before you submit the FAFSA form. Stay ahead of the process. You do not need to be accepted to any school in order to submit your FAFSA. If anyone tells you different, they are not be being truthful. DO NOT WAIT TO SUBMIT THIS FORM.
Rule 7 – List all of the schools where the student is seeking admission on the FAFSA form. All schools listed will receive a copy. The schools where you have been admitted will consider the information you include on your FAFSA form to create your financial aid award letter. Your financial aid award letter will be included in all of your college/university acceptance letters.
Rule 8 – Do not wait until you or your parents file taxes for the current year to submit your FAFSA form. When needed, you can update that information later. Use the income and asset information reported to the IRS the previous year to fill out the FAFSA form early.
Rule 9 – Do not leave any answers blank on the FAFSA form. Write in “0” for questions that do not apply to you.
Rule 10 – If the student submitting the FAFSA is a male student between the ages of 18 and 25, this student should register with Selective Service at www.sss.gov. Doing so will ensure that your student will be considered for all federal aid where he is eligible.
Rule 11 – After you submit your FAFSA form, you may see a web page for your individual state’s financial aid application pop up on your screen. Fill this application out so you can be considered for all aid from your state. This is especially important to complete if you are applying to a public institution in your state of residence.
Rule 12 – To reduce your EFC (Estimated Family Contribution), which is calculated by your FAFSA form, pay any and all bills that you have prior to your FAFSA application submission in order to reduce the amount of cash in your savings and checking account. Also, don’t withdraw retirement funds, don’t have any assets in the name of the student for whom the FAFSA is for, and don’t take out a home equity loan.
Rule 13 – Be cautious about having a college savings 529 plan for your student. Any money saved within this plan will need to be reported on the FAFSA and therefore will be factored in the amount of aid you qualify for, which will be reduced.
Ultimately, the most important rule to remember is to file the FAFSA form. Unfortunately, because of the cumbersome and time-consuming process, many students who need the financial help the most will forgo filing entirely. Don’t be that person! Failing to file the FAFSA could mean leaving thousands of dollars on the table. DO NOT LEAVE YOUR MONEY ON THE TABLE.
Here is the reality: You can’t be considered for aid if you don’t apply. In 2015, an estimated 2 million students who didn’t file for FAFSA were eligible to receive a Federal Pell Grant. Out of this 2 million, 1.3 million would have qualified for the max grant. Don’t be a part of the herd that is left out.
File now, file it right and follow up.
Happy Filing!
Warmly,
Brittany A. Smith
CEO & Founder, Turning Dreams Into Goals