KNOW THE FACTS

Know The Facts

By Howard Freedman

Copyright 2024 Financial Aid Consulting. All rights reserved. No portion of this article may be reproduced mechanically, electronically, by photocopying or by any other means without expressed written permission of the author. Howard can be reached at finaidguy@gmail.com or 781-341-0234

A student's financial aid award is at risk when families rely on incorrect or misleading information. Regardless of the cause, test your financial aid knowledge by deciding which statements are true.

1.     It is only beneficial to file a FAFSA if you have unmet needs.

2.     It is best to wait for your current year's taxes to be filed before submitting a FAFSA.

3.     A FAFSA allows you to report information to only ten colleges.

4.     Expected Family Contribution is what a family must pay for college.

5.     A CSS Profile is also used for federal need-based aid.

6.     A custodial stepparent’s income is not reported on the FAFSA.

7.     Students living off-campus are "independent" for financial aid purposes.

8.     Additional Stafford loans are available if a parent is approved for a PLUS loan.

9.     Students applying for early decision are not eligible for federal aid.

10.  Both parents need usernames and passwords for the FAFSA.

11.  Tax exemptions on a parent’s tax return must equal the family size on the FAFSA.

12.  Repayment options for federal and alternative loans are the same.

13.  Financial aid awards must be accepted or rejected in their entirety.

14.  Untaxed child support received is not reported on a FAFSA.

15.  Families earning over $250,000 per year are ineligible for Stafford loans.

16.  The value of a tax-sheltered annuity must be reported on the FAFSA.

17.  The verification process applies only to questionable FAFSA forms.

18.  Families with the same incomes will always have the same Expected Family Contributions.

19.  A student’s 529 value must be reported as a student's asset.

20.  Spending down all of your assets will increase your financial need.

21.  The EFC cannot be changed after the FAFSA is submitted.

22.  A FAFSA is the primary source of merit aid.

23.  The FAFSA should be completed after the student is accepted.

24.  It is best for a parent to stop working to guarantee more financial aid.

25.  EFC calculations are the same regardless of your state of residency.

Congratulations if you answered that none of them were 'true". Though they may appear "true," you need to understand how simple it is to make an incorrect assumption. That is why I provide the right answers that will get you on the right track!