Tag Archives: FAFSA
Student Loan Tips For Recent Graduates
It seemed like a great idea at the time. Getting a personal loan was hardly an option, but financial aid institutions provided loan after loan to get you through school. If financial aid was your sole provider of getting through school, chances are, you feel like your student loan is going to follow you around for the rest of your life. Consider these tips when dealing with the after effects of taking in large amounts of financial aid: A Student Loan is an Investment in Your Future Consider your student loan as an investment rather than a burden. If you think about it, you’re not very different from a business that has borrowed thousands of dollars in start up money. The student loan funded your professional education, now you have the skill sets needed to earn the money to pay back your debt. This is why the government is so willing to provide financial aid to millions of people every year. What they pay in financial aid, is returned in your contribution as a skilled member of society. Student Loan Consolidation Many small businesses use a variety of funding sources when getting started such as credit cards, personal loans, and … Continue reading
Most Common Federal Student Loan Programs
The Federal Student Loan Program was created to meet the financial aid needs of a variety of students. Therefore, not all student loan programs are created or distributed equally. The two primary student loan categories are public or private. The difference being that the former is funded by government programs and the latter is offered through private lenders. Generally, a federal student loan will have much more favorable terms than a private student loan. Stafford Loans The Federal Stafford Loan is by far the most popular government-run student loan program, probably because borrowers are not subject to a credit check, and since they also offer financial aid that is both subsidized and unsubsidized. The benefit to this program is, as long as you apply before your school’s funds run out, you can use a Stafford Loan as a form of non-need based financial aid. Students who utilize this form of financial aid are guaranteed one low interest rate over the life of their loan, and are allowed to defer student loan payments for six months following graduation or withdrawal, giving them time to find a job. In addition, financial aid is available to students at both the undergraduate and graduate … Continue reading
Maximizing Your Financial Aid Eligibility
The following are the top strategies in impacting need-based financial aid eligibility: 1. To maximize financial aid, save money in the parent’s name, not the child’s name. 2. Pay off consumer debt, such as credit card and auto loan balances 3. Parents should go back to school to further their own education at the same time as their children, or have multiple children in college at the same time. The more family members that are enrolled, the more student aid will be available to each. 4. Spend down the student’s assets and income first. 5. Accelerate necessary expenses, to reduce available cash. For example, if you need a new car or computer, buy it before you file the Free Application for Federal Student Aid. 6. If you feel that your family’s financial circumstances are unusual, make an appointment with the financial aid administrator at your school. Sometimes the school will be able to adjust your financial aid package to compensate using a process known as Professional Judgment. 7. Minimize capital gains and in turn, maximize student aid 8. Maximize contributions to your retirement fund. 9. Do not withdraw money from your retirement fund to pay for school, as distributions count … Continue reading
Avoid Losing Your Student Aid
According to the U.S. Department of Education, if a student is convicted of a drug offense after receiving federal student aid money, he or she must notify the financial aid department immediately and that student will become ineligible for any further student aid. They will also be responsible for reimbursing any and all financial aid they may have received after the conviction. The law requires that a student lose his or her financial aid upon conviction of a drug offense. The good news is that many times, student aid can be recovered in many ways. Even if a conviction results, a student can take advantage of a rehabilitation program that can make them eligible for financial aid again. Under the Higher Education Act, students become ineligible for federal student aid money upon conviction of any offense involving the possession or sale of drugs. This includes Pell Grants, Stafford Loans, Plus Loans, Work-Study Programs, and Perkins Loans. Common questions from those who lose financial aid How long am I ineligible for federal student aid? For possession of illegal drugs First offense: You are ineligible for financial aid for 1 year from the date of conviction. Second offense: You are ineligible for … Continue reading
Avoid Frustrating Mistakes on your Free Application for Federal Student Aid (FAFSA)
A mistake on your FAFSA can delay the processing of your application by up to three weeks. Consider this statistic, one in seven FAFSA forms is returned do to errors. It can happen to you and it can result in your being denied student aid due to lack of funding. Common mistakes when filing your free application for federal student aid (FAFSA) The most frequent mistake when applying for student aid is to leave a field blank. If the answer is zero or does not pertain to you, write in a zero. Leaving a question blank can lead to the processor assuming that you forgot to answer. This can result in the FAFSA being returned to you and delaying student aid you desperately need. Use the 1040 federal tax return for income reporting and reporting taxes paid when filing for student aid. Some parents and students accidentally use their W-2 form. When applying for student aid, don’t forget to report all the required sources of untaxed income. This includes Social Security, Child support, and Aid to Dependent Children. Report your correct marital status. You must be married before the date you sign your FAFSA. Include yourself in household size. Even … Continue reading
Basics on the Free Application for Federal Student Aid (FAFSA)
The Free Application for Federal Student Aid is a form that can be filled out annually by current and prospective college students in the United States to determine their eligibility for federal student aid. The Department of Education begins accepting the FAFSA on January 1st of each year. For previous FAFSA applicants, a renewal form is provided, but tax and income information must be updated annually. In addition to using this information to determine eligibility for federal student aid, most states and schools use FAFSA information to award non-federal student aid. The FAFSA consists of questions regarding the student’s finances, as well as the family’s finances, number of siblings in college, number of dependents in the family, and dependency status. The information provided in the FAFSA determines the level of student aid by entering the given information into a formula that determines the “Expected Family Contribution”. A flaw in FAFSA methodology is that the use of this information implies that the parents will contribute to their child’s education, whether that is true or not. A Student Aid Report, which is a summary of the FAFSA responses, is forwarded to the student. The student should review the SAR carefully for errors … Continue reading