Don’t include retirement assets on FAFSA.
FAFSA doesn’t care how much you have in your IRA, 401(k) or other
qualified retirement account. However, FAFSA does ask about taxable
accounts and college savings plans.
1. Don’t assume you won’t qualify for aid because of your home equity
FAFSA doesn’t inquire if you own a house, so your home equity
amount is irrelevant. FAFSA does ask about second homes and real estate
investments.
2. Be careful what assets you include in your calculations
Don’t include cars, boats, furniture or other household possessions as
assets.
3. Avoid procrastinating
File FAFSA as soon as possible. If you wait until April to file your taxes
and the FAFSA, you could miss the deadline. If you can’t complete your
income tax return promptly, fill out the FAFSA with estimated figures.
4. Don’t enter the wrong income tax figure
Provide the federal income tax you paid or will pay based on your 2010
federal tax return-not the tax withholdings on you and a spouse’s W-2
forms.
5. Be careful about tapping retirement funds
The money you withdraw from your retirement accounts will be counted
on your adjusted gross income, which will impact your Expected Family
Contribution (EFC). Your EFC is the dollar amount that a school, at a
minimum, will expect you to kick in for one year of your child’s college
expenses.
6. Avoid Blank Answers
If you intend to answer zero, write “0” or “not applicable”. Leaving
blanks on FAFSA form can cause miscalculations and the application could
be rejected.
7. Don’t inflate your education
If both parents didn’t graduate from college even they did attend
college, don’t list “college” as their highest education. Plenty of schools
treat applicants more favorably if they are considered “first-generation”
college students.
8. Don’t forget to list the colleges
On the FAFSA form, you can include up to 10 colleges to which your
son or daughter has applied. The federal processors will send the pertinent
FAFSA information to the schools on the list.
9. Don’t forget to list the colleges
On the FAFSA form, you can include up to 10 colleges to which your
son or daughter has applied. The federal processors will send the pertinent
FAFSA information to the schools on the list.
10. Double check all your figures
Too many people skip this step.
Ask for help
When filling out the FAFSA, you can obtain help through the toll-free
number: (800) 433-3243. You can also take advantage of the government’s
online chat sessions by using FAFSA on the Web Customer Service Live
Help on Monday through Saturday. Just Google the term.
11. Correct mistakes
After you submitted your FAFSA, you can still correct mistakes. Return
to the online form and click “Make FAFSA Corrections.” Any changes will
be processed within three to five days.
12. List the most current marital status
You need to state what your marital status is on the day that you sign
the FAFSA, whether you are married, separate or divorced.
13. Have the correct parent complete the FAFSA
In case of divorce and separation, make sure that the right parent
completes the FAFSA. The custodial parent must fill out the financial aid
form. However, for financial aid purposes, the parent who must complete
the form will be the one who has lived with the student for the majority of
the year. And the divorced parent completing the FAFSA will be the one
with the lowest income because only his or her finances will be shared on
the aid form. The FAFSA won’t ask about ex-spouse’
14. Have the correct parent complete the FAFSA
In case of divorce and separation, make sure that the right parent
completes the FAFSA. The custodial parent must fill out the financial aid
form. However, for financial aid purposes, the parent who must complete
the form will be the one who has lived with the student for the majority of
the year. And the divorced parent completing the FAFSA will be the one
with the lowest income because only his or her finances will be shared on
the aid form. The FAFSA won’t ask about ex-spouse’
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