FAFSA Form & Financial Aid Form Blog

For those who don’t know, if you have past drug convictions, for selling or possession while you were receiving Federal aid, then this can affect your aid eligibility. Your eligibility for Federal aid is revoked for a period of time (directly correlated to the type and number of convictions).

I did some research on this, and it appears that as long as you have completed an “acceptable drug rehab program”, you can still receive federal aid. There are no time constraints on this, either. You could be convicted of selling/possessing drugs, enter a rehab program, complete it, and still get federal financial aid right away

An acceptable drug rehabilitation program must include two random drug tests.

The program must also:

• Be qualified to receive funds from federal, state, or local governments

OR

• Be qualified to receive funds from a federal or state licensed insurance company

OR

• Be administered or recognized by a federal, state, or local government agency or court

OR

• Be administered or recognized by a federal or state licensed hospital, health clinic, or medical doctor

I also found that if this drug conviction (for selling or possessing) was 2 or more years ago, then a drug rehab program is NOT required, and you should still be able to get federal aid. If you have more than 1 drug conviction in the past 2 years, then your eligibility is suspended for longer.

If you have more than 1 drug conviction in the past 2 years, you have to wait longer in order to be eligible for Federal aid. (it appears that each drug conviction you have = 1 year of lost eligibility). If you have 3 or more drug convictions in the past, then you are ineligible for Federal aid indefinitely.

While filling out the FAFSA can potentially give you free money from the government, so can taking the time to find scholarships on the web. It can be time consuming but it results in free money for school that you dont have to pay back. Check out this article for more:

How to get a Scholarship (Associated Content article)

If anyone knows of some interesting scholarships, tell us about it!

To celebrate our 10th anniversary, the Student Loan Network is giving away a $10,000 scholarship! Enter to win our drawing at:

and then start participating in Scholarship Points.

Who can win?

Any college student or graduate student attending school in 2008. Money will be paid directly to the financial aid office, and the contest ends on Leap Day, February 29, 2008.

Source: FAFSA blog

As we approach the end of calendar year 2007, it’s a good idea to turn our eyes to the future and start thinking about our 2008 financial aid efforts. Here are 5 strategies to help you make the most of the waning days of 2007 with payoffs in the year to come.

1. See an expert. Most community banks and credit unions offer access to a certified financial planner for little or no charge, making them a great, hidden resource for figuring out your finances. Take the opportunity and an hour or two on a weeknight or weekend to see one and review your personal finances. Get a sense for where you are and how your finances are currently set up.

2. Start writing scholarship essays. Scholarship season really starts in earnest in January of each year, and the sooner you can get your applications in to a scholarship foundation, the sooner you can move onto the next application. Do your research for which scholarships would be appropriate to apply to, and download their applications. The most time consuming part of the scholarship search is the essay, so start writing now!

3. Do your budget. January is often thought of as the time to embark on resolutions, but now is the time to plan for those resolutions so you can hit the ground running after the champagne’s gone.

4. Set goals. Set measurable, achievable goals for yourself in 2008, like a scholarship application a weekend. Be sure to have a calendar set up so you don’t miss any deadlines.

5. Get ready to file your FAFSA. The FAFSA process kicks off on January 1, but having your IRS 1040 mostly done will speed up the process, as will doing the FAFSA worksheets. Run through our FAFSA tutorials here on FAFSAonline.com and make notes of where you have questions - then contact your financial aid officer or attend a College Goal Sunday event to get those questions answered!

At recent financial aid conferences, much has been made of the fact that:

• high school students may choose not to go to college partly because of complex financial aid paperwork such as the FAFSA
• college students may opt to pay for college with private student loans instead of federal student loans due to the FAFSA

Questions for you, readers:

• Has the FAFSA stopped you or anyone you know from applying to college?
• Has the FAFSA stopped you or anyone you know from even trying to get federal financial aid?

Leave a comment here with your answers. I’d love to know more about your personal financial aid experiences.

Did

you

know

that…

if you have been convicted of possession or sale of an illegal substance during a period of enrollment…you will not be eligible for Federal student aid, including Federal student loans? In some cases, even if you have been convicted in the past of sale or possession of an illegal substance, you may not be eligible for federal aid in the future. Students at Truman State University, in Missouri, are able to voice their opinions on the subject mostly due a national campaign run by the Students for Sensible Drug Policy (SSDP). In an article written by Heather Turner, she explains why this topic is up for debate:

“In July the Senate passed the Higher Education Access Act of 2007, which expands funding for federal aid, with the question still on the FAFSA form, according to Library of Congress Records. SSDP members hope to convince enough members of the House of Representatives to keep the question off of the FAFSA form before the bill is passed sometime in October or November. Richardson said he thinks there is a good chance the question will be removed because the House drafted an earlier version of the bill that did not include the amendment containing the question.”We’re hoping there’s a good chance that it will go through the House without the question, and then when it comes to the committee that decides on the final bill, they’ll end up siding with the House version,” Richardson said.Rep. Rebecca McClanahan, D-Kirksville, said she is open to discuss the issue with students, even though she is not involved directly with the legislation.”I’ve been concerned about some of the enforcement of very minor offenses that sometimes appear to be overblown when we could be using our energies on things that are more of a problem,” McClanahan said.She said her experiences working as a nurse with individuals who had substance abuse disorders has given her a broad understanding of the issue.”[The question] doesn’t even speak to the issue that a person that’s even addicted has perhaps gone through treatment and has achieved sobriety after a significant addiction,” McClanahan said. “I assumed that would still apply to them, which seems like an unfair restriction when a person is doing well.”Ryan, a former Truman student who asked for his last name to be withheld, was found to be in possession of marijuana on campus his freshman year at Truman. He said there still are ways to find funding to cover education costs. Ryan said he has been able to keep his scholarships and would have been able to keep the scholarships offered to him through the University by completing a program that included writing a paper and attending meetings, had he not opted to go to another college.

“I honestly think Truman has the right idea with the writing of the paper, and I had to go to a counseling meeting, like a group counseling session,” Ryan said.

Completing a drug rehabilitation program like the one Truman requires after a student commits a drug offense involving illegal substances is part of the criteria for regaining eligibility for federal aid, according to an amendment in title IV of the Higher Education Act that went into effect in 2000.

“The scholarship that I have kept four years now is A+, and drug offenses are not, I guess, considered a reason to lose it,” Ryan said.

Ryan has not had to file for federal aid to cover his college expenses but said that even though he understands where the government is coming from, it seems like it violates personal rights to ask whether or not students have been convicted of a drug offense.

“I think that it should be evaluated on a case-by-case basis for repeat offenders perhaps,” Ryan said. “I don’t think on a first time basis you should lose your scholarships or federal money.”

Data the national SSDP chapter received through the Department of Education shows that more than 189,000 applicants have been disqualified nationally since the question was added to the FAFSA form in 2000 because of their responses, including about 2,800 applicants in Missouri.”

What do you guys think?

Helpful Sites on Federal Aid

FAFSA
Scholarships
Add me as your friend!

For the full article quoted above click here

Because it is nearing the end of the summer, students are scrambling to find ways to pay for school. I received a phone call a few minutes ago from a girl who needed a loan asap! Here is a re-creation of our conversation:

Caller: “Hello, my tuition is due August 15th, and I am short $2,000. If I can’t come up with the money, my school will drop my classes. Can you help me?”

Me: “Sure, have you already filed a FAFSA for this school year”

Caller: “What is a FAFSA?”

Me: “FAFSA is the federal form that all students should fill out. It is free to do, and it determines your eligibility for federal grants, and all federal student loans. You cannot take out a federal loan unless you have a FAFSA on file, which is why it is really important to fill out this form.”

Caller: “Ok, so I fill this form out, and then I will be able to take out a Stafford Loan.”

Me: “Well not exactly. Once the FAFSA is filled out, your college receives a Student Aid Report from the government. On that SAR report, it will say whether you are eligible for the Stafford Loan (which is based on your financial need). If you are eligible to receive the Stafford Loan, then you would just fill out a Stafford Loan Promissory Note in order to receive the funds. This whole process can take over a month to complete, from start to finish. ”

Caller: “Oh I see, so it is probably too late at this point in time to do the FAFSA and get the Stafford Loan?” Me: “Most likely, yes. Check with your school to see if they will still accept a FAFSA for Fall semester. If they say no, then you can apply for an Act Education Loan; which does not require you to have a FAFSA filed. You can get those funds in 3-5 days.”

This is a conversation I have almost daily. Remember to file your FAFSA, and then renew it every school year. That way you won’t be left in a jam.

For more information, visit:
Stafford Loans
Scholarships
FAFSA help

Small businesses that are majority owned and controlled by the family no longer have to be reported as an asset. The business must have fewer than 100 employees and the household members who are included on the application must own and control more than half of the business.

Assets held in the name of a dependent student or an independent student without dependents will be assessed at a maximum rate of 20 percent, down from 35 percent in years past.

The maximum assessment rate for independent students with dependents effectively drops to 3.29 percent from 5.64 percent.

Assets held in the parent’s name will continue to be assessed at a maximum rate of 5.6 percent.

Assets held in a dependent student’s name in a qualified account do not have to be reported on the 2007-08 FAFSA — at all.

Qualified accounts include Coverdell Education Savings Accounts, Section 529 prepaid tuition plans and Section 529 college savings plans.

This change was probably the result of a legislative drafting error, says Mark Kantrowitz, a financial aid expert. Congress wrote a law saying that qualified accounts in the name of a dependent student will no longer be considered student assets. But it never said they would be treated as parent assets instead.

Parents who think their dependent children might be eligible for financial aid can take advantage of this loophole by moving money from an UGMA/UTMA account into a 529 college savings plan in the student’s name before filling out the federal application. Then they won’t have to list the account on the 2007-08 application.

If Congress changes the law, families will still benefit from this switch because the account will be likely counted as parent assets and assessed at the parent rate (maximum 5.64 percent) instead of the student rate (maximum 20 percent).

In the past, prepaid tuition plans were not reported as an asset on the federal aid application. Instead, they were treated as a “resource,” which was even worse because they offset financial aid dollar for dollar, Kantrowitz says.

The new form asks if the student has been convicted of a drug offense while receiving federal student aid, a change from previous forms which asked in general. A yes answer can still result in no financial aid.

Higher income-protection allowances for students go up slightly this year — to $3,000 from $2,200 for dependent students. For independent students, the allowances go up by $1,050 or $1,700 depending on their marital status and whether they have children. This gives you the flexibility to earn more with summer jobs.