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?
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?
