BEFORE
SENIOR
YEAR
WAYS TO MAXIMIZE
YOUR AID:
Remember to keep your “base” year of
adjusted gross income and total worth
as low as possible in the year prior
to your application—this will reduce
your expected family contribution and
increase your financial aid opportunities.
IT’S NEVER TOO LATE TO
USE A 529 COLLEGE SAVINGS
PLAN FAFSA puts less weight on
these funds. It also has state income tax
benefits.
Pro tip: If a grandparent owns the
529 plan, it won’t be used in the FAFSA
analysis formula at all.
MAKE YOUR BIG PURCHASES
NOW If you are going to make big
purchases like a new roof, do it the year
before so that money is not counted as an
asset. Keep in mind that adding
consumer debt will not help, but
increasing your investment spending or
business debt can mean more aid.
TAKE STOCK OF YOUR
ASSETS Assets excluded in the
Expected Family Contribution (EFC)
formula are: retirement plans, your
personal residence, life insurance,
annuities, personal cars and boats.
PLAN YOUR COLLEGE
SPENDING Since a student’s assets
are assessed at a higher percentage than
parents, plan to use student assets first.
Also, keep in mind that the assets of a
sibling are not calculated in the FAFSA
equation.
GETTING MARRIED Step-parent
income is now considered in the EFC
formula so this will potentially decrease
amount of aid—we support marriage so
please do get married, just realize that it
will probably affect your EFC.
Be sure to consult a tax adviser before
using any of these strategies. The
information contained in this article is
not given with the intent to offer legal
or tax advice since the situation of each
individual is different.
DOUBLECHECK FOR
ACCURACY
The most common errors made when
filling out the FAFSA include the
student’s name and Social Security
number not matching as it appears
on the Social Security card and the
date of birth. “FAFSA uses a variety
of government systems to check for
accuracy, eligibility and citizenship.
If a student does not have correct
information, or it is incomplete, they
may have to start the process over
prior to receiving any funding,” said
Stephanie Miller, Asst. Director of
Student Financial Services at JSU.
RESOURCES:
FINANCIAL AID OFFICE
AT THE COLLEGE
FAFSA.ED.GOV
ESTIMATE WITH
FAFSA4CASTER
1. To ensure you don’t miss out
on the maximum federal student
aid available, when is the best
month to submit your FAFSA?
A. August
B. December
C. January
D. April
2. What do you need to be
eligible to receive federal
student aid?
A. U.S Citizenship
B. Social Security Numbers
C. High school diploma or equivalent
D. All of the Above
3. Which of the following
determines how much federal
student aid you’ll receive?
A. Your expected family contribution
B. Your year in college
C. Your enrollment status
D. The cost of attendance at the college
you will be attending
5. Which of the following
financial information is required
on your FAFSA?
A. The value of your 401K
B. Credit History
C. Bank Account Numbers
D. None of the Above
E. All of the Above
4. How much of the student’s
income does FAFSA consider?
A. 0%
B. 33%
C. 50%
D. 100%
www.potentialmagazine.com
ANSWERS
Answers: 1. C 2. D 3. E 4. C 5. D
FAFSA QUIZ
15