FAFSA/Financial Aid Update

FAFSA/Financial Aid Update

With the cost of college rising each year, many families look to financial aid to help pay for their student’s education.

In order to qualify for financial aid — both from the federal government and/or from the college — students must file the Free Application for Federal Student Aid, or FAFSA.

Filling out the form isn’t as complicated as you may have heard, and it’s well worth it to find out if your student is eligible to receive grants (money that does not need to be paid back), work study and federal student loans. And new for this year: there is now a mobile FAFSA app, MyStudentAid, that will make it even easier for students (and their parents) to submit the FAFSA.

Here is what you need to know about the 2019-20 FAFSA!

Tips for filling out the 2019-20 FAFSA from CollegiateParent

The new mobile FAFSA app.

 

  1. The application for the 2019-20 academic year goes live on October 1, 2018.
  2. The FAFSA will collect 2017 tax information.
  3. The website has been redesigned to make it more mobile friendly. Students can even apply for financial aid using the mobile myStudentAid app, available on iTunes and Google Play.
  4. Students complete the FAFSA but if they are financially dependent, they need their parent(s) tax information as well as their own.
  5. Both the student and one parent need a FSA ID (Federal Student Aid ID) to complete the application.
  6. You can use the IRS Data Retrieval Tool to automatically transfer information from your federal tax return into the FAFSA. To improve security following a data breach in 2017, transferred information doesn’t display in the form but rather you will see “Transferred from the IRS.”
  7. Current college freshmen and upperclassmen receiving financial aid must reapply each year by submitting the FAFSA and any other forms required by their school (see our renewal tips below).
  8. The first “F” in FAFSA stands for “Free.” There is no charge to submit an application on the official fafsa.ed.gov website. Beware of online companies that will contact your student and offer to help them maximize their financial aid award by charging a fee to help them submit the FAFSA!
  9. Do be on the lookout for free financial aid/FAFSA preparation workshops at your local high school, community college or town library.
  10. Current high school seniors applying to college should complete the FAFSA as soon as it is available and can send the application to all the schools they’re applying to. Colleges and universities will typically offer an estimated financial aid award around the same time that they offer admission to an applicant.
  11. The deadline for submitting the 2019-20 FAFSA is June 30, 2020. HOWEVER, states and colleges/universities have their own deadlines that are often much earlier. Schools in particular will have “priority filing” deadlines that must be met. At some schools, the earlier a student submits the forms, the greater the chances of receiving institutional financial aid. Look at a college’s financial aid office webpage to find the deadline, or call.

 

 

7 things students and parents must have on hand in order to fill out the FAFSA:
  1. A FSA ID
  2. Social security number
  3. Driver’s license number (if you have a driver’s license)
  4. 2017 tax records
  5. Records of untaxed income (such as interest income or child support received)
  6. Records of your assets (bank account balance, value of stocks, value of real estate other than your primary home, etc.)
  7. List of schools your student is applying to or currently attends that will receive the information from your FAFSA.

Learn more about each item on this list here.

CSS Profile

A second form, CSS Profile, is used by almost 250 colleges, universities, professional schools and scholarship programs to determine a student’s eligibility for the institution’s own grants and scholarships (which may be need-based, merit aid or a combination). CSS Profile is also available on October 1 and also uses prior year taxes for assessing a student’s financial need. In addition, CSS Profile collects estimates of the current year’s income for both students and parents and projected income for the following year as well, and some colleges may ask similar questions on their own financial aid forms.

CSS Profile is managed by the College Board, the same company that administers the SAT, PSAT and AP tests, so if your student has taken those tests, they will already have a login which makes it easy to get started. There is a fee to submit CSS Profile to the schools your student attends or is applying to but fee waivers are available for eligible families. Find out more about fee waivers as well as information for divorced/separated families, international students and more on the CSS Profile website.

Financial aid throughout college

If your student wants to continue receiving financial aid beyond the first year of college, they need to complete the FAFSA (and CSS Profile if it applies) each year. Students must refile the FAFSA to qualify for government aid — federal grants, federal student loans, federal parent loans and work study — and institutional grants and scholarships.

There are a few reasons for this. Families experience job changes, increases and decreases in income, graduations, marriages, births and other life events that affect finances, taxes and financial aid eligibility. One simple but significant change in family circumstances that impacts aid is an increase in the number of children in your family attending college in a given year.

Financial aid formulas also change each year. If a college raises tuition, room, board, fees, etc., it must then adjust its COA (Cost of Attendance) which in turn affects the formula it uses to determine need-based aid. Your EFC (Expected Family Contribution, generated by the information you enter on the FAFSA) is also adjusted each year.

Always file the FAFSA even if you think your family might not qualify for federal aid. Colleges use this form when giving out their own scholarship and grant funds. Even if your student didn’t receive financial aid the previous year, they might qualify for merit aid based on academic performance while in college.

Renewal tips

Your student will not have to start a new FAFSA every year. The renewal FAFSA is populated with the previous year’s personal and demographic information. Your student can access the form and its information by using the FSA ID that they used the previous year to file. Gather all documents, personal and financial in advance — find out what you need and view informational videos about how to complete the FAFSA here.

CSS Profile must be completed every year as well. Once your student has logged in to their account with their username and password, they can download a printable application worksheet that will help them gather all the pertinent information for renewal. For the schools that require CSS Profile, your student’s eligibility for merit aid is directly tied to this form.

If your student currently receives financial aid, the school will communicate directly with your student about procedures and deadlines for renewal. Information will also be available on the college or university’s Financial Aid Office webpage.

 

529 savings accounts and financial aid

Is your family using 529 savings accounts to help pay for college? Good news: changes made to the FAFSA in recent years will give you more flexibility about which accounts to draw on when.

You may know that qualified distributions (payments) from parent- or student-owned 529s are not reported as income and are ignored by the FAFSA formula when calculating your EFC. However, qualified distributions from 529s owned by a grandparent or third party count as untaxed student income on the FAFSA and can decrease your student’s financial aid.

For this reason, in the past families were advised to hold off until the final year of college to tap into grandparent 529 accounts. Now, with the FAFSA collecting tax year information from two years prior to the academic year when the aid will be received, families can use grandparent or third party 529s to finance the last two years of college without it impacting FAFSA formulations and the student’s financial aid eligibility.

Updated for 2019-20 with contributions from CollegiateParent staff.

 

More resources for college financial planning — click on the title to read:

Managing student loans
Keep applying for scholarships
How and why to apply for financial aid

 

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Suzanne Shaffer

Suzanne Shaffer counsels parents and students in the college admission process and the importance of early college preparation. Her blog, Parenting for College, offers timely tips for parents and students and provides parents with resources to help their college-bound teens navigate the college maze. Suzanne is a regular contributor as a college prep expert and parent advocate to TeenLife Online Magazine, College Focus, Noodle Education and CollegiateParent. She is also the Parent College Coach for Smart College Visit.

2 comments

  1. Hello, I am a single parent and through the FAFSA my son is getting financial aid for his first semester/year 2017 since he was 17. For the new year since he is now 18 can he do his own FAFSA and maybe get more financial aid, how does that work? Thank you.

    Toni
    • Your son can fill out his own FAFSA but will still be required to include information about parental income unless he is “emancipated” (not a dependent for tax purposes, and not receiving any financial support from parents). He does need to fill out a new FAFSA each year and any other financial aid renewal forms required by the school.

      Diane Schwemm

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