merifontain: Tis the Season for Financial Aid: 6 Tips

Friday, January 4, 2013

Tis the Season for Financial Aid: 6 Tips - BostInno

With the start of every new year comes a recurring headache for college students: filling out that pesky Free Application for Federal Student Aid, better known by the acronym FAFSA. Yes, ?tis the season for financial aid and although the FAFSA deadline for the 2013-2014 academic year isn?t until June 30, 2014, the Massachusetts state deadline is May 1, 2013?and your desired college?s may be sooner. Worse, the longer you wait, the lower your chances are for collecting the maximum amount of FAFSA financial aid you?re crossing your fingers for and hoping to receive.

All that said, here are six pieces of advice to keep in mind when filing for financial aid.

Finish Up Those Taxes a Bit Earlier

Not only should you be filing for FAFSA early, but you should be preparing your taxes earlier, too. Most of what the application requires is that you fill out information directly from your tax returns. For those unable to complete their returns before some schools? February deadline, however, a helpful trick is to use last year?s information as a reference to estimate your earnings. As long as your realistic about your income and expenses, you can always update your FAFSA information later on.

Keep Those Retirement Assets to Yourself?

The quickest way to ruin your chances of receiving financial aid is by including your retirement assessments on the FAFSA. The form doesn?t ask about assets from 401(k) plans, Individual Retirement Account or 403(b) plans?only non-retirement assets. So, just keep the information to yourself. No need to lessen your chances of acquiring need-based aid.

Do Relay Any Unusual Information?

A family?s financial situation can change in the blink of an eye. Because of that, families have the ability to appeal to a college to adjust their financial aid after submitting the FAFSA. Is a recent layoff or expensive medical bill plaguing the household? Say something. Same goes for families lucky enough to receive a random bonus or plenty of overtime pay. They can write to a college?s financial aid office and explain the occurrence was rare and not likely to recur the following year.

Don?t Inflate Your Education

This specific tip comes from Lynn O?Shaughnessy, the author of several books including The College Solution. She claims several schools ?will give applicants brownie points if they are considered first-generation college students.? So, if your parents never graduated from college, select ?high school? as their highest education qualification.

Make Sure the Right People are Filling Out the Right Information?

For those whose parents are divorced or separated, make sure the right parent is filling out the financial aid form. Although one parent might be deemed the legal custodial guardian, the parent actually responsible for filling out the form is the one you?ve lived with for the majority of the year.

Double Check Everything?

Sounds silly, but both students and parents constantly forget to look forms over to make sure they haven?t left any answers blank or lines unsigned. Some even spell their names wrong. And one slip of the finger could turn a parent?s $50,000 salary into a $500,000 one. Make sure your prepared, file early and be thorough. The more errors, the longer the FAFSA takes to process and the lower your aid. With the average student loan debt ringing up at an unpleasant $27,000 a year, the FAFSA isn?t a form you want to fudge up.

For more tips on completing the form, check out additional information from the Minnesota Office of Higher Education and the FAFSA Help site. Or, for some general entertainment and a couple of laughs during these stressful times, check out the FAFSA-themed memes below.

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FAFSA-Themed Memes to Keep You Smiling