You can log back in anytime to make changes. You can only skip FAFSA questions about assets if you meet the qualifications to do so based on your answers to other questions on the application. You may decide to fill it in anyway, because it may be necessary for some financial aid from your college choices.
When in doubt, sit with your high school counselor or go to a financial aid office at a community college nearby. Some community organizations may also offer free help. Eligible non-U. Other immigrants may be able to apply as well, such as those with refugee or asylum-granted status. If you are an immigrant to the U.
International students should fill out the FAFSA if they meet one of the qualifications above or if the college financial aid office advises them to do so. However, they may be eligible for state and college-specific aid. Students in this category should contact the college financial aid office to see if filling out the FAFSA is necessary for gathering financial information from the student. Whether from the FAFSA or other sources, schools will want to evaluate whether a student has financial need.
You can pick and choose which financial aid you select. For instance, you may decide to accept grants and scholarships and reject federal student loans. Once the loan is issued, you will incur an origination fee a fee to borrow the money even if you repay the loan the same day. Always review pre-populated information to make sure it is still accurate for your current situation. For instance, you may have changed your permanent address or you may transfer schools.
Reyna Gobel, M. The CSS Profile does not have a simplified needs test. The FAFSA also has an asset protection allowance that shelters a portion of parent assets based on the age of the older parent. There is a similar asset protection allowance for independent student assets, but none for dependent student assets.
The CSS Profile has several specific asset protection allowances, such as allowances for emergency reserves and education savings, but not a general asset protection allowance. Asset values are reported as of the date the application for financial aid is filed, so you can make changes to shelter assets on the FAFSA up until that date. Otherwise, the asset value will be based on the most recent account statement. Reportable assets are based on the net worth, after subtracting any debts that are secured by the asset.
Debts that are not secured by the asset do not affect the net worth. For example, if a family uses a home equity loan on the family home to buy a second home, the home equity loan reduces the net worth of the family home, not the second home.
A line of credit, however, is not reported as an asset. Thus, the proceeds from the sale of the family home count as an asset on the FAFSA unless they are in escrow for the purchase of a new home.
The intention to buy a new home is not enough. Whole life and cash value life insurance policies are sheltered as retirement plans, but they are bad investments. I'm exploring all my options and if this way is illegal, then obviously doing it is out of the question. Any suggestions how to lower your EFC when you have assets that count against you? Join the Discussion.
Match Instantly. I am a: Student Parent of a student Parents: Complete the questions using your child's information. This yields a lower AGI. The risks, however, often outweigh the benefits. Such a transfer of assets will result in a reduction in eligibility for financial aid, and the child is not obligated to spend the money on educational expenses. But the need analysis formulas assume that the child contributes a much greater portion of his or her assets and income than the parents, with the result that such tax-sheltering strategies often significantly reduce eligibility for financial aid.
The College Cost Reduction and Access Act of changed the treatment of custodial versions of qualified tuition accounts, like college savings plans, prepaid tuition plans and Coverdell education savings accounts. Specifically, for a custodial account to be counted as a parent asset instead of a student asset, all of the following must be true:. Before filing the FAFSA, the parent should convert the asset by liquidating it, as contributions must be in cash into the custodial version of a college savings plan, prepaid tuition plan, or Coverdell ESA.
The money will then be treated as a parent asset on the FAFSA even though it is still owned by the student. Many need analysis formulas divide the parent contribution among all children in college. Since there has been a history of fraud in this area, you will have to convince the financial aid administrator that you are genuine.
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