Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
FAFSA, to do or not to do
Old 10-12-2016, 11:47 AM   #1
Full time employment: Posting here.
 
Join Date: Aug 2007
Posts: 766
FAFSA, to do or not to do

With DS applying for colleges this Fall, it's time for me to figure out if it's worthwhile to submit a FAFSA application. I've filled out the estimator and our EFC is high. All we'll qualify for are unsubsidized Stafford loans, which is true when both DS and DD are attending college.

DS is applying to three schools, two in-state public universities and one Canadian university. We've committed to paying for the top in-state school and any difference he has to make up. This means if he attends the Canadian university, he'll have to pay 10k/year. We may or may not pay this for him, but if we do pay this, preferably it would be after he graduates. That's where the situation becomes a little bit more complicated.

If we don't fill out FAFSA, then how does he borrow money? And looking at Stafford loans, he'd be capped at $5,500 for the first year, which is still shy of the 10k/year difference. That means he'd somehow need to borrow $4,500 without our help, which seems unlikely.

This looks like a negative towards filling out FAFSA. It makes me wonder if we should draw up a legal document lending him the money from us? But this starts to borderline on the silly, since what if he defaults, etc. Honestly, I wish there was some way he had to borrow all the money and then we'd pay it off after he graduates, but that's wishful thinking.

So that's issue #1. The next issue are merit-based scholarships.

One interesting tidbit that I learned is that not all universities require a FAFSA to be considered for merit-based scholarships. In DS's case, his backup university does not require FAFSA. I'm pretty sure the top in-state university does require FAFSA and I have no idea on the Canadian university (still researching this part). However, the top in-state/Canadian university are competitive. DS will probably be accepted, but he'll probably be in the 60-80% range of students accepted (not in the top 10%), so the likelihood of getting a merit-based scholarship is less likely. This is where I'm 50/50 on the benefit of filling out FAFSA.

The biggest negative for filling out FAFSA is that DS is going to have visibility into our finances and I'm not sure how much I want him to know. If there's no real benefit for us filling out FAFSA, then I have an inclination to pass and figure out how to pay for college on our own.

Are there any other reasons I should consider for FAFSA?
__________________

__________________
Eat, Drink and Be Merry.
tulak is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-12-2016, 12:06 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 11,549
I did it... and DS got his loan...

Remember, it does not include 401(k) and IRAs... really any kind of retirement account.... so your son will not get a full picture of your finances...

Also, there are a lot of current threads talking about the same thing... do a search and read what others have posted there...
__________________

__________________
Texas Proud is online now   Reply With Quote
Old 10-12-2016, 12:17 PM   #3
Full time employment: Posting here.
 
Join Date: Mar 2008
Posts: 634
I think there are two options if you're concerned about your son seeing your financial information. First, you could fill it out directly. Our kids had no interest in it so I managed the form during their college years. Second, I believe there is an option on the form to indicate parents refusal to provide financial information. I don't know if there are any additional hoops to jump through going that route. This is based on information from 3 years ago, the last time I had to fill one out.
__________________
akck is offline   Reply With Quote
Old 10-13-2016, 03:45 PM   #4
Recycles dryer sheets
 
Join Date: Dec 2013
Posts: 80
Does a Vanguard annuity get reported on a FAFSA?
__________________
Free bird is offline   Reply With Quote
Old 10-13-2016, 06:07 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,348
I did it directly and the kids had no clue not that it would've mattered.


Sent from my iPhone using Early Retirement Forum
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 10-14-2016, 01:21 PM   #6
Dryer sheet aficionado
 
Join Date: Feb 2015
Posts: 28
I filled out the forms for my twins knowing that they would only qualify for loans, but none of the schools would consider them for scholarships of any kind without FAFSA first. My kids never saw the forms as it was all done on-line by me, although they know my income and our financial picture in broad terms. The only thing they saw was the Expected Family Contribution on the University website.


Sent from my iPhone using Early Retirement Forum
__________________
beanctr88 is offline   Reply With Quote
Old 10-16-2016, 04:37 PM   #7
Dryer sheet aficionado
 
Join Date: Oct 2015
Posts: 31
A quick question for the sages here. A fair amount of my compensation is "salary at risk". Last year (2015), company performance was not so good, so when I file taxes this year, 2016 income will be a less than 2015.

I assume I can still wait to file the FAFSA until I have completed my 2016 taxes? That is still an option, correct? Have done it previously and always filed after completing the previous years taxes.
__________________
eastnortheast is offline   Reply With Quote
Old 10-16-2016, 05:27 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 11,549
Quote:
Originally Posted by eastnortheast View Post
A quick question for the sages here. A fair amount of my compensation is "salary at risk". Last year (2015), company performance was not so good, so when I file taxes this year, 2016 income will be a less than 2015.

I assume I can still wait to file the FAFSA until I have completed my 2016 taxes? That is still an option, correct? Have done it previously and always filed after completing the previous years taxes.

IIRC, and I could be way off on this, I think you can put down what you think your tax liability will be and then correct it when your finish your return....
__________________
Texas Proud is online now   Reply With Quote
Old 10-16-2016, 07:22 PM   #9
Full time employment: Posting here.
 
Join Date: Jul 2002
Posts: 850
The FAFSA for the 2017-2018 school year is based on your 2015 tax return. The procedures regarding what year is reported for the above school year has been completely revised. See: https://studentaid.ed.gov/sa/about/a.../fafsa-changes
__________________
RE2Boys is offline   Reply With Quote
Old 10-17-2016, 08:37 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 11,549
Quote:
Originally Posted by RE2Boys View Post
The FAFSA for the 2017-2018 school year is based on your 2015 tax return. The procedures regarding what year is reported for the above school year has been completely revised. See: https://studentaid.ed.gov/sa/about/a.../fafsa-changes

Thanks for the update... I had read about this change but did not know it was a requirement.... I thought it was an option...
__________________
Texas Proud is online now   Reply With Quote
Old 10-18-2016, 10:08 AM   #11
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 1,970
Quote:
Originally Posted by Texas Proud View Post
Thanks for the update... I had read about this change but did not know it was a requirement.... I thought it was an option...
Yup, the year earlier makes a big difference. I have a 10th grader and my tax year for his freshman year FAFSA starts 1/1/17. Many people will be caught unawares and lose the opportunities (such as they may be) for planning ahead.
__________________

__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What fafsa loopholes did you find with ER? calichica FIRE and Money 44 07-28-2014 07:34 PM
FAFSA Analysis jazz4cash FIRE and Money 0 04-11-2012 01:57 PM
FAFSA Question logged out Other topics 16 02-02-2012 03:56 PM
Do FAFSA Soon After Jan 1? TromboneAl Other topics 11 02-22-2008 04:32 PM
FAFSA - EFC Sam FIRE and Money 18 03-03-2007 06:04 AM

 

 
All times are GMT -6. The time now is 01:43 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.