Potential Magazine College Organizer 2019 | Page 48

9
pay the way
maximizing financial aid
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TIPS FOR MORE FINANCIAL AID
To ensure the best federal financial aid package possible,
consider these tips:
HAVE YOUR CHILD SAVE IN YOUR
NAME
Students are expected to contribute 20% of their
savings towards their education while parents
have 5.64% expected contribution. So students
should put savings in their parents’ names while
in high school and college to boost the amount
of loans and grants they receive.
DON’T WAIT, SEND SIBLINGS
FAFSA uses the number of children you have in
college when calculating your expected
contribution. If you have a child who is
expected to start college only a year or two
after an older child, go ahead and let him or
her apply, as the amount of aid you receive will
increase to meet the increased financial burden.
INVEST IN YOUR FUTURE EARLY.
The FAFSA does not require you to list assets
you may have in the form of IRAs or 401(k)s.
However, your prior year’s contributions to re-
tirement accounts may count as income, so any
money that you plan to invest for retirement,
try to do so at least two years before completing
the FASFA.
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PAY OFF YOUR DEBTS
FAFSA considers your income and assets, but
does not consider how much of your money is
tied up in bills. Additionally, college loans may
have higher interest rates depending on your
credit score. So, it is wise to pay off credit card
and loan debt to increase aid eligibility and
lower the loan interest rates.
INCLUDE UNBORN BABIES ON
YOUR FAFSA
Part of federal financial aid depends on how
many children you support, and the age of
dependent children does not matter. So if
you are pregnant when you are filling out
your student’s FAFSA, you can include your
soon-to-be baby, which lowers your expected
contribution and increase your child’s loan
and grant amounts.
DISCUSS SPECIAL
CIRCUMSTANCES
If you have special circumstances
limiting your ability to pay for your child’s
college tuition such as high medical or legal
expenses, the financial aid office may be able to
work out a better loan and grant eligibility for
you than the impersonal FAFSA formulas.