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01.26.07 | 5 Bizarre Things You didn’t Know about FAFSA
- Federal law suspends your eligibility for federal student aid, if you have been convicted for the possession or sale of illegal drugs for an offense that occurred during a period of enrollment for which you were receiving federal student aid (grants, loans, and/or work-study).
- Even if you are 23 years old, living on your own, paying your own way…the Gov’t still views you as a dependent student…meaning they still use your parents’ income to determine your specific “financial need”…(my advice: just wait a year until you are 24 and considered an adult in the eye of the Feds)
- Legal Emancipation from your parents does NOT qualify you as an independent student.
- If you transfer schools, you MUST update your FAFSA online. You will not be able to receive loans at your new school unless you do this.
- FAFSA is not a loan!!!! It is a government form that determines your eligibility for all types of aid, including loans.
Filed under: FAFSA
Here’s a good one. When you’re filing your FAFSA, there’s a SAVE button that lets you retrieve a saved application later.
Except…
It’s only on certain pages.
So save as often as you can.
January 29th, 2007 | #
Is it not inappropriate to be considered a dependent for the sole reason that you are under the age of 24 on FAFSA?
February 5th, 2007 | #
Because your parents can take you as a legal dependent on their taxes up through age 24, you are considered to be dependent upon your parents until the year in which you will become 24. Since the financial aid application for the year in which you turn 24 precedes the year in which the tax forms are filed, there is no way to know in advance whether or not your parents will claim you.
It would take a change in both tax law and financial aid law to make an adjustment, and you can bet most parents would scream bloody murder if they could no longer deduct their dependent children working on an undergraduate degree. In addition, a lot of students would not be able to have their parents borrow a PLUS loan to help pay their expenses if they were not considered dependent students.
It’s a two-way street.
On the flip side, a student who is a graduate student is independent at any age. (The government apparently feels that once the parents have helped the student through the bachelor’s level, it becomes the student’s responsibility to pay.) Even if the parents can claim the student as a dependent, the student does not need to report parental income. However, the student does need to report any untaxed income and benefits, including money received or paid on their behalf (e.g., bills)–so whatever someone else gives them, including payments for tuition and so on in the previous year–is counted as the student’s untaxed income.
February 5th, 2007 | #
I still need aid for my school.I need go to school this year but, I can’t because I must to paid RCC 1083 for last year. It’s clear to go back to school,for RCC there is no way to advance, since January 22,2007 class begins
February 5th, 2007 | #
If I graduated with my Bachelors in December, and I don’t turn 24 until May, should my parents still claim me? I live on my own if that means anything. Thanks
February 5th, 2007 | #
Another thing that doesn’t make sence is that you can’t include debt or exclude cash that will be used for tuition.
I get loans for my graduate degree. It is only dispersed twice a year (September and January). The problem is I take spring classes (in May), so I have the extra money from my January loan dispursement (about $2500.00+) in my bank until May when I have to pay my spring tuition. I have to claim that on my FAFSA as “balance in my … account … as of today” when it is loan money that I will owe back to pay for my upcomming tuition!! They make me count it as savings!! Last year I used the money to pay off a credit card before filling out my FAFSA, then put my spring tuition on my credit card. The only problem with this is my University charges a 3% fee for using a credit card as a method of tuition payment. In addition, I do not have enough credit card debt this year to do that again. I think its outrageous.
February 6th, 2007 | #
Search this page if you are looking for the 6 digit code for the college or university that you are interested in attending. Its easy to use because the codes can be looked up by the State your school is in. Check it out!
http://www.fafsaonline.com/FAFSA-school-codes/
February 6th, 2007 | #
Student loan proceeds in your savings? You may get a different answer from half the financial aid advisors you ask, but the other half would say exclude it from what you report on the FAFSA. Usually, the only time assets are questioned are if you report $300 in assets and your tax return shows $4,000 in interest. If it is ever questioned explain it to the school. Worst case - they say you have to include it.
Common sense sometimes should rule. Or do you count all the pennies in your penny jar when reporting how much cash you have?
February 7th, 2007 | #
In response to Kevin who posted a comment on 2/6 if you read the question As of today what is your total current balance of cash savings and checking accounts? It says (Do not include student Financial Aid. So you would not count loan money you have in your account.
February 7th, 2007 | #
I have a friend whose parents flattly refuse to give him their W2, and Social Security number so he can go to college. Is there any way to go to court to either: do the above 18 equivalent of emancipation, or force them to give up this information. Otherwise there is no possible way for him to enter College.
June 20th, 2007 | #
My SAR says that I dont qualify for pell grants, but there is no way I can pay for college myself, and my parents cannot help me. Many of the scholarships I’ve been looking into applying for require that you demonstrate ‘financial need’. Does not qualifying for pell grants mean that I dont demonstrate financial need?
Nobody In my family has gone to college and i am so lost- any info on how to get around this would be appreciated.
June 28th, 2007 | #
[...] to allow emancipation unless something bad is going on. Also, FAFSA does not recognize the status: 5 Bizarre Things You didn’t Know about FAFSA | FAFSA Financial Aid Form News Blog As far as form 8615, I agree with kaneohe. I don’t see how the form can be avoided, but you might [...]
April 7th, 2008 | #
Would fafsa would give me financial aid if I am going for a Second Bachelor Degree? My first Bachelor is from Mexico
April 25th, 2008 | #