Preparing for Finaid Applications

Preparing for Finaid Applications
by thumper1
I've noticed that there have been a number of questions about financial aid as this year's application process gets underway. I thought it might be good to have a thread with suggestions of things to do, and think about. I will start...and number my items. I would suggest that we cut and paste the ideas, thus creating a longer list. I know there are a LOT of you with great suggestions.

Preparing for Finaid Applications

1. First, have a discussion with your parents re: college finances. It is important to know what your family will consider contributing towards your college expenses BEFORE you apply to colleges.

2. Check the school websites. The deadlines and application forms requirements vary WILDLY from school to school.

3. Deadlines...Deadlines....Deadlines. Once you find out the deadlines, do not miss those dates. Have your information sent in advance of the deadline just in case there is a goof up and you need to resend something. If you don't apply on time, you jeopardize your chances of receiving finaid.

4. Make sure you have a financial safety in your mix of college applications. It is important to have a school that you would like to attend AND that you can afford to attend, regardless of financial aid.

5. IMPORTANT...If financial aid is a consideration...do NOT apply EARLY DECISION. Do NOT!! ED is a binding acceptance. When you apply ED, you are agreeing to attend the school if you are accepted. Don't assume that "not meeting your finaid" will easily release you from a binding ED acceptance. If you apply ED, you do not get the opportunity to compare financial aid packages from multiple schools. Yes, it is said that if the school does not meet your need, you can back out of an ED acceptance. BUT there are two things to remember....the SCHOOL determines your need, not your family. AND they can meet your need with loans as part of the package.

6. Keep good financial information for the tax year you will be using for your finaid applications. You may need to use this information to do estimated finaid application forms prior to when you complete your taxes.

7. Speaking of taxes...this is the year to complete your taxes (both you and your parents) ASAP after January 31 (which is when you should have all of your tax info..yes, I know the self employed have problems with this...but you self employed folks...do the best you can to get this done ASAP). This is NOT the year to do taxes on April 15.

8. The FAFSA is available online for filing on January 1 of the year your child is applying for finaid (e.g. Jan 1, 2008 for the 2008-09 school year). Plan to file very close to Jan 1 using accurate estimates using a "will file" status, meaning you will be filing your taxes for the 2007 tax year. Then complete your taxes ASAP after Jan 31, and you can amend the FAFSA online and resubmit indicating that you have filed.

9. Profile...in most cases you will be completing the Profile, if required by your school, at the same time as your FAFSA. BUT check those deadlines....if you are applying EA or ED, or for some scholarships, there could be a priority deadline for filing and this could be as early as October. And yes...you would be using accurate estimates. Sadly, the Profile cannot be amended online once your taxes are complete...you need to do that by hand and send to the college(s). But don't miss the priority deadline if there is one.

10. Check to see if your college(s) requires their own finaid application form. Some do...and these need to be completed as well.

11. Keep good records and copies of EVERYTHING. Print out your FAFSA and Profile, and tax returns (even if you do them online).

12. Look to see what a school requires. Some schools require income tax forms (signed) as part of the application process.

13. Important!! Some schools require completion of finaid forms for both need based AND merit aid. Make sure you understand what the college requirement is...don't assume anything...and remember again, that the requirements vary from school to school.

14. Use the online finaid calculators as they will give you an ESTIMATE of your Expected Family Contribution (EFC). These will NOT give you an estimate of your finaid award. There IS a difference.

15. You can only submit to six schools at one time for the FAFSA. If you apply to more than six schools, you will need to submit the application to the first six schools...wait until it is processed...then go in and amend. Delete the first six and add the others.

16. Full free rides are out there but they are not the dominant form of finaid offered.

17. Most schools (even those meeting full need) require a student contribution. Make sure you can meet this need as well.

18. Re: amending the FAFSA (after you complete your taxes)...the only info you amend is that which reflects the correct numbers from your tax returns. Your asset information (bank accounts, etc) is not changed UNLESS there was a mistake. If there was a mistake, you change the asset number to the correct one as of the date of your first filing of the FAFSA (this happened to us...we put an incorrect account down...and needed to change it to the correct one).

19. There is a locked thread entitled "Financial Aid Resources" at the top of this area. The sites there will provide you with a LOT of information and I would urge you to read them.

20. If you are an undergraduate student, your place of residency for financial aid purposes is the state in which your parents reside. It is NOT easy to get independent student status for financial aid purposes or in-state tuition in a state in which you do not reside.