Tick-tock, tick-tock.Can you hear that?That’s the sound of father time chasing you down like a mountain lion tracking a baby calve.
For many schools the FAFSA deadline is fast approaching for the 2009-2010 school year, and because a great deal of financial aid is awarded on a first come, first serve basis, you want to act fast to ensure you get your piece of the pie.
Flush Your Accounts: the time to buy school supplies; computers, mini-refrigerators, etc is before you file for aid.It is even wise to pay bills in advance if possible.Just try to get those accounts down to maximize your aid benefits.
Shift Assets: any property, savings, and cash in the students name carries more weight (which means you get less aid). You want those assets in a parent’s name.Student’s assets are assessed at 20% rate while parents are just below 6%. Apply Early. Some funds are awarded on a first come, first serve basis which makes completing your application within the first 60 days of eligibility imperative.For the 2009-2010 academic year complete your application now (click here).
I’ve seen over and over in the comments on the blog – and thank YOU for commenting! – questions about who claims a student as a dependent on their taxes and the FAFSA. Let’s clear things up right away:
Dependency as defined by the IRS is different than dependency as defined on the FAFSA.
In cases of divorce, the defining factor for dependency is who the student lived with for more than 50% of the year. Thus, a student could live with Dad 8 months of the year but Mom could still claim the student as a dependent on her taxes – however, the student would always use Dad’s financial information on the FAFSA.
In cases where parents don’t provide support or information – unless you meet one of the 11 standard definitions of independent student, you are still required to provide parental information. The 11 standard definitions are:
You are at least 24 years old on the day you file your FAFSA
You are or will be enrolled in a masters or Doctoral degree program at the beginning of the school year
You have dependents other than your spouse who live with you and who receive more than half their support from you at the time you apply
Both your parents are deceased (or were until age 18) a ward of dependent of the court
You are currently serving on active duty in the U.S. Armed Forces for purposes other than training
You’re a Veteran of the U.S. Armed Forces.
You were a foster child after the age of 13.
You are an emancipated child as determined by a court judge.
You are homeless or at risk of homelessness as determined by the director of a HUD approved homeless shelter, transitional program, or high school liaison.
If none of these apply, you are a dependent student.
In terms of your taxes, who claims you or who you claim on your taxes has little bearing on your financial aid. Consult a qualified tax planner for more details on how to successfully manage your taxes for maximum benefit.
Subscribe in a reader