FAFSA

FSA recently provided updates to the Student Debt Relief Plan. This information is important for former students or college graduates with outstanding federal student loans. There are two important things to remember right now regarding student loan forgiveness: these changes apply only to federal student loans and there may still be some opposition or changes to the plan. The plan will also affect future payments by creating a new income-driven repayment plan. The following types of federal student loans with an outstanding balance as of June 30, 2022, are eligible for relief: William D. Ford Federal Direct Loan (Direct Loan) Program loans Subsidized loans Unsubsidized loans Parent PLUS loans Graduate PLUS loans Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency Federal Perkins Loan Program loans held by ED Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, and graduate PLUS; and Perkins loans held by ED). If you have a remaining balance on your defaulted loan(s) after relief is applied, consider getting or staying out of default through the Fresh Start initiative. Consolidation loans are eligible for relief, as long as all of the underlying loans that were consolidated were first disbursed on or before June 30, 2022.   Student loan repayments will restart in January 2023. Be aware of this timeframe if you have outstanding federal student loans. That being said, here is information from the latest White House Fact Sheet and FSA sources regarding the COVID-relief loan forgiveness program: Over 40 million borrowers are eligible for the student debt relief plan; nearly 20 million could see their entire remaining balance discharged. Additional details will be released soon about the debt relief plan from the Department of Education. Unless changes are made in their state laws, seven states may tax forgiven debt. Those states are Arkansas, California, Indiana, Minnesota, Mississippi, North Carolina and Wisconsin. The U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. Get details about one-time student loan debt relief. Relief is capped at the amount of outstanding debt. You will not receive funds if your debt is less than the potential relief amount. Nearly 8 million borrowers may receive relief automatically because relevant income data is already available to the Department of Education. If the Department of Education doesn’t have your income data, there will be a simple application, which will be available soon. Log in to your account on StudentAid.gov and make sure your contact info is up to date to receive updates by both email and text message. If you would like to be notified when the application is open, sign up at the Department of Education subscription page. If you must complete an application for relief, you are advised to do it by November 15, 2022, to have the funds applied before repayment begins in January. This relief applies only to federal student loans received before June 20, 2022. No loans disbursed after that date will be included in this program. Your loan servicer will notify you when the relief has been applied to your account, with details on how the relief was applied. You are eligible for a refund if you made voluntary payments during the pandemic. Beware of potential scams – you will not be charged for loan relief.   CFAA consults with students and parents to plan for every step of the college financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

October is rapidly approaching. Most families know that the Free Application for Federal Student Aid, or FAFSA, will be available on October 1 for the 2023-2024 academic year. Anyone hoping to qualify for financial aid at the federal, state, or institutional level should be prepared to complete this financial aid application as soon as possible. But some families are surprised to find out that they also have to complete the College Board CSS Profile. Each year CSS Profile unlocks access to millions of institutional financial aid dollars. Many colleges, universities and scholarship programs use CSS Profile and/or IDOC as part of their financial aid process for some or all of their financial aid applicants. Carefully read your college’s financial aid website page to determine if you are required to complete a CSS Profile, or look at their list of 2023-24 Participating Institutions and Programs. Some schools may also require divorced or separated parents to complete separate applications. Some colleges and universities require families to submit the CSS Profile every year. Other schools only require the application for the student’s freshman year. Check with each college or university for requirements. Like the FAFSA, CSS Profile is working to make it easier to complete their application. Here is what you need to know if you will be completing a CSS Profile: Documents: You’ll need your most recently completed tax returns for 2021, W-2 forms and other records of current year income, records of untaxed income and benefits, assets, and bank statements. User Account: If you have a College Board account, sign in using the same credentials. You may already have a College Board account if you have taken the SAT. This will save you time and help apply any fee waivers to your CSS Profile application. Save and Return: You do not need to complete the entire application at one time. Deadlines: Check your college financial aid deadlines to be sure you get your application submitted on time. Tutorial: Watch the CSS Profile Tutorial for step-by-step instructions. Fees: The CSS Profile is free to domestic undergraduate students whose family income is up to $100,000. Fee Waivers may be available based on income. If you do not receive a Fee Waiver, the fee for the initial application is $25. Additional reports are $16. Payment may be made via credit or debit card. Dashboard: Your dashboard includes your payment receipt and any next steps, such as uploading documents through the Institutional Documentation Service (IDOC). You may also add additional schools at any time by clicking on “Add a College or Program.” Be sure to check your Dashboard regularly. Mistakes: If you make a mistake on your application or need to include additional information after you submit, you can update your application by clicking “Correct Your CSS Profile” on your Dashboard. CSS Profile for Non-Custodial Parents: This can be a big issue for families with divorced or separated parents, as some colleges may require the non-custodial parent is required to provide financial information. This requirement is based on the belief that the parents are first responsible for their student’s educational costs. If students do not have contact with the non-custodial parent, a CSS Profile Waiver Request for the Noncustodial Parent is available to provide to colleges. Reporting Parents: CSS Profile is more in-depth about reporting the various familial relationships. You may be asked to provide information about step-parents as well as biological or adoptive parents. Students who choose not to submit a CSS Profile might not receive financial aid to which they might otherwise be entitled. It is worth investing the time to complete all applications. We consult with students and parents to plan for every step of the college financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

It’s September, that time of year when our thoughts turn to fall and pumpkin spice everything. Fall is when there is less light during the day, and also the time when there are fewer days until the FAFSA. Yes, that’s right – it’s FAFSA time again! Come October 1, the Free Application for Federal Student Aid for the academic year of 2023-2024 will officially be available. Anyone hoping to qualify for financial aid at the federal, state, or institutional level should be prepared to complete the FAFSA as soon as possible. You want to leave wiggle room to make any revisions or corrections, and give colleges sufficient time to consider your information. Some funds are limited, so you also want to give yourself the best shot at qualifying. Although there has been a lot of talk about simplifying the FAFSA, you will probably not be able to notice a lot of changes yet on this year’s form. Here is what is new so far for FAFSA 2023-2024: Simplification: FSA continues to work on FAFSA simplification, and is reducing questions accordingly. Questions that will not be on this year’s form include male/female identification and registration for Selective Service. Drug Convictions: FSA has removed the drug convictions question and worksheet. Drug convictions will no longer affect student eligibility to receive federal student aid. User Role: Users filling out information can select their role in the application process from a few different options — parent, preparer, or student. State Aid Applications: Students and parents may be eligible to transfer their FAFSA information into a state aid application. Participating states include Iowa, Minnesota, Mississippi, New York, Pennsylvania, and Vermont. Mobile App: FSA is retiring the myStudentAid mobile application. Users will not be able to submit the application via the mobile app any longer, but will still be able to complete the FAFSA application on a mobile device by navigating to StudentAid.gov on their mobile browser. Incarcerated Students: Incarcerated students will regain the ability to receive a Federal Pell Grant. To address this legislative change, FAFSA is making system changes. Income: The income threshold for an automatic zero Expected Family Contribution (EFC) increased from $27,000 to $29,000 for the 2023-2024 award year. Demographic Survey: A new Demographic Survey has been added. Users will be asked to provide the student’s gender, race, and ethnicity prior to submitting the FAFSA application. Questions must have a response, but the response can be “Decline to Answer.” Your responses to these questions will not affect your federal financial aid award. Multiple Students: Parents who have multiple students attending college may be eligible to transfer their FAFSA information into a new application from the original student’s confirmation page. Schools: Students are able to view additional information about the schools they selected on their FAFSA form for easy comparison of schools. Corrections: Students and parents can correct or update an application once it is processed. Keep in mind that the FAFSA will be based on information provided in your 2021 federal income tax return. If you have already completed it, you should be able to access the IRS Data Retrieval Tool to automatically populate many of the questions on your application. This may seem like a lot, but it really is not, especially in terms of the bigger changes that have been anticipated for some time. There is a FAFSA Simplification Act in place, and we do expect to see major changes in the coming years. If you have any questions about what this year’s FAFSA will look like, or need to know how any of these revisions affect you and your family, CFAA is here to help. We consult with students and parents to plan for every step of the college financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

The FAFSA (Free Application for Federal Student Aid) and CSS Profile (if needed) for the 2023-24 college year will be available online beginning October 1. Every year, around this time, students and parents start to worry about getting their applications completed quickly. They know that the FAFSA can often be the first step in obtaining federal, state and institutional aid. But, any mistakes can lead to delays and frustration. To save you from that anxiety, here are my tips on the most common FAFSA missteps to avoid: Not Being Prepared: We all know that the FAFSA comes online every year on October 1, so there is plenty of time to get ready for it. But, just like clockwork, many families seem surprised that it’s FAFSA time again, and rush around trying to gather documents. Take a look at my list of documents now so this doesn’t happen to you. Also, be aware that states have financial aid deadlines, and some are as early as November! FSA ID Problems: Parents and students must have separate FSA ID numbers, yet this also seems to be an issue every year. Do NOT create an FSA ID on someone else’s behalf.  Parents should not create an FSA ID for their children, for example, and a student should not create an FSA ID for their parents. If you have not done so already, create an FSA ID now. Not Signing the FAFSA: Always be sure to sign the FAFSA. That’s one thing you will need the FSA ID for – not only does it get you into the FAFSA website, it also serves as your legal signature when submitting the document. Wrong Name: The name you use on the FAFSA must exactly match the one associated with your Social Security number – no nicknames, no different spellings – exactly the same. And, speaking of Social Security numbers, both parents and the student will need one. If you don’t have one already, request a new or replacement card from the Social Security Administration now. No 2021 Federal Income Taxes: The FAFSA uses the IRS Data Retrieval Tool to help in completing the FAFSA online. This makes it so much easier, and helps to avoid transposition errors. Parents: The FAFSA form has very specific guidelines about which parent’s information to report, and it has nothing to do with who claims you on their taxes. You cannot say you live with a grandparent and use their financial information if they do not have legal guardianship over you. Leaving Blank Fields: Too many blanks may cause miscalculations, and lead to an application rejection. Enter a “0” or “not applicable” instead of leaving a blank field. Using Commas or Decimal Points: Always round to the nearest dollar. Failure to List Both Parents If They Live Together: If both legal parents (defined as biological or adoptive parents) live in the same household, they must both be listed on the FAFSA, even if they are not married. Not Checking Your Work: Step away from the application for a minute, and then go back and review it again with fresh eyes. Omitting the College List: You must list potential colleges, so they will receive your information and review it as part of their financial aid award process. The biggest FAFSA mistake to avoid is not filling one out at all. With all the potential pitfalls, some families will just throw up their hands and forget about even trying to complete the FAFSA. But that is the worst thing you could do. You could eliminate yourself from the running for many forms of college financial aid, and will also need it if you want to apply for federal student loans. CFAA helps students plan for every step of the college financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Summer is quickly coming to an end, and school will be back in session before you know it. For high school seniors, that means crunch time for college and financial aid applications. The FAFSA (Free Application for Federal Student Aid) and CSS Profile (if needed) for the 2023-24 college year will be available online beginning October 1. It is important to complete these key financial aid applications as soon as possible so that students receive the maximum amount of financial aid to which they are entitled. To complete your financial aid applications quickly and efficiently, it is best to gather all of your documentation now so you will be ready to go when the time arrives. Here is what you will need: FSA ID: If you have not done so already, create an FSA ID now. This consists of a unique user ID and password which becomes a digital legal signature that lets you complete and update the FAFSA form. Parents of dependent students need to use their own FSA ID to complete the FAFSA process. Do NOT create an FSA ID on someone else’s behalf.  Parents should not create an FSA ID for their children, for example, and a student should not create an FSA ID for their parents. Social Security Number: Both parents and student need a Social Security number to complete the FAFSA. If you don’t know what your Social Security number is, you can request a new or replacement card from the Social Security Administration. If you are not a U.S. citizen, but meet other eligibility criteria for federal student aid, you will need an Alien Registration number. Driver’s License Number: Students will need to enter a driver’s license on the FAFSA form, if you have one. 2021 Income Information: By now, parents and students should have submitted their 2021 federal income tax returns, and will have access to the IRS Data Retrieval Tool to help in completing the FAFSA online. If you experienced a reduction in income during 2022, you will still complete the FAFSA using your 2021 tax information. Save all documentation regarding the change, and then contact the school where you plan to attend, to explain and document the change in income. Records of Untaxed Income: The FAFSA asks questions about untaxed income, such as child support, interest income, and veterans’ non-education benefits that may apply to you. Records of Assets: Have access to information about savings and checking account balances, as well as the value of investments, such as stocks, bonds, and real estate (excluding your primary residence.) You will report the current amount for these accounts as of the date you sign the FAFSA form, rather than reporting 2021 tax year amounts. List of Colleges: Be sure to add any college you’re considering, even if you haven’t applied or been accepted yet. You can always remove a school later if you decide not to apply, but if you wait to add a school, you could miss out on financial aid. The schools you list on your FAFSA form automatically receive your financial results, and will use your provided information to determine the types and amounts of financial aid you may receive. Be aware that some states require you to list schools in a particular order to be considered for state aid. I will be setting up CFAA information-gathering Zoom sessions with students to review our plan to maximize financial aid opportunities and make sure all documentation is in order. Please look for my email that lists the information you will need to have available for this meeting. CFAA helps students who are planning for college with every step, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. If you have not already signed up with CFAA, you can set a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Is it possible to experience inflation, and worry about a recession at the same time? Apparently so, since that is what seems to be in the news headlines these days. We haven’t thought about the economy too much over the last few years, as we were focused on just getting through COVID, but it is back to being front and center. For parents of high school seniors, money questions all focus on the cost of being able to send their student to college. Students who will be high school seniors in just a few short weeks know there are a lot of deadlines coming up – they have to watch their college admissions deadlines for early decision and early action applications. They also have to be ready to complete the FAFSA as soon as possible after it comes online in October. One other timeframe to be very aware of in these uncertain economic times is that for scholarships. It can be tricky to predict exactly what college tuition will look like for the 2023-24 academic year, although net cost calculators on your colleges’ websites should give you a pretty good idea. There is also ongoing speculation on the federal level that the amount for Pell grants will be increased. While these elements are pretty much out of your control, one area where you can take action now is scholarships. Many college scholarships are available to help cover the anticipated costs of attending college. Some scholarships are large and some are small, but they can definitely help families pay a portion or all of the bills – especially at a time when money might be especially tight due to inflation. Scholarships have a wide variety of deadlines. Some require an application at a certain point in the senior year of high school – usually in the late fall or early winter, but some go well into the spring and even into the freshman year of college. So, I generally recommend that students put together a scholarship timeline to be aware of the various deadlines, and set aside appropriate planning time. Here are some steps to get you started: Get organized: Think about your unique skills and abilities, to find areas that might offer scholarship possibilities. Contact trade associations in your field that might want to support young talent. Look for friends or relatives who work in that area as well. Start a possibility list: Create a chart to help organize your scholarship opportunities. List out deadlines and submission qualifications, and allow sufficient time to complete everything. Be aware that some may require letters of recommendation, which can take time to obtain, so build that into your schedule. Set a steady pace: Don’t get so wrapped up in the scholarship side of things that you neglect the application and financial aid sides. Work out a schedule where you spend a set amount of time on each task every week. Get ahead of the game: Don’t wait until the last minute to apply, even if the deadline isn’t for a few months. Knock off the top scholarships on your list as soon as possible, and allow time in case you forget something. Stay organized: Don’t let your scholarship communications get lost among your other notices. Keep a separate file and email address so everything is easily accessible. Keep copies in case something gets lost.   Some scholarships require you to complete the FAFSA for the 2023-24 college year. That will be available October 1, 2022, so make sure to file your 2021 federal income tax return, apply for an FSA ID, and have all your financial documentation in order by then. CFAA helps students who are planning for college with every step, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Rising seniors can set a CFAA new client free strategy session or a 15 Minute Power Chat to learn about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Well, it is almost August already – the time of year when those fresh high school graduates head off to college. This may truly be the first time your student is on their own, making decisions about how to handle the choices they will face. In many cases, those choices have to do with money. As a parent, it may be hard to think that the child whose biggest money decisions so far have been about food and clothing. You might be concerned that they are in for quite a shock. In college, they will have to make smart financial choices every day – about what to do, where to go, whether to use a credit card, and how to spend their student loan money. If your children are already money smart, give them (and yourself) an A+; but if they need more help, here are some lessons you can impart before packing up the car: The BIG Lesson – live within your means! This is the fundamental part of money management for everyone from college students to business tycoons. In short, expenses should not exceed income. You might call it a budget, but it helps to teach your student about where their money comes from and where it goes. They might have grants and scholarships, student loans, and an allowance from you, or a job where they earn money. Help them see how much this adds up to on a monthly basis, and compare that against their possible expenses. Be sure to include every detail like lab fees, books, data plans, laundry, and personal entertainment. If the numbers don’t balance, there could be problems ahead. Talk about student loan repayment NOW! In most cases, you don’t really have to worry about repaying student loans until after graduation. But, they are there, lurking in the background, patiently waiting for those college years to pass. In the blink of an eye, the time passes and your new graduate is faced with thousands of dollars in debt just as he/she is starting out in life. Be very clear about whether you expect your student to be responsible for repayment, and compare anticipated monthly payments against future potential incomes and expenses. The best strategy is to borrow as little as possible now, to make those payments more manageable later. Credit cards are NOT easy money: Credit card companies like to bring in new college students as customers, and often offer very appealing introductory interest rates. They offer surprisingly generous terms for students who really don’t have a credit history. But the bills start coming in just as soon as your student starts using the card. If they are not paid, the interest starts to accrue. With today’s uncertain financial times, credit card interest rates could increase drastically in the very near future. Teach your student about the dangers of seeing credit cards as “easy” money. Consider using a debit card which you can load with a specified amount of money, and monitor their spending during the year. Keep searching for scholarships: These really are “free” money, if your student continues to meet the criteria. Some are only available to students already in college, so it is worth the time to keep searching after high school ends. Don’t forget that you have to file a FAFSA for every year your student will be in college, and in need of financial aid. Assign responsibility for filling out the application, and set aside time in your fall schedule to make sure it gets done. Congratulations and enjoy your freshman year of college, but remember to start making smart money choices. CFAA helps students who are planning for college now with every step, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Rising seniors can set a CFAA new client free strategy session or a 15 Minute Power Chat to learn about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Well, half the year is gone already. I hope you are enjoying your summer, and getting in some family fun time. Rising high school seniors will have some work to complete, too, as there is a lot of college planning that needs to be done over the next few months. One thing you definitely need to be aware of is that the financial aid “season” begins on October 1. That is the time when financial aid applications for the 2024-2025 academic year will become available online. Although there are various state and institutional deadlines for the latest time to apply, you want to complete those applications as soon as possible, so you don’t miss out on any financial aid opportunities. That gives you about three months to familiarize yourself with the process, learn about deadlines, and gather your documentation. To help you get a good start, here are some key financial aid terms you will need to know: Family Size: This is an important factor in calculating financial aid. For a dependent student, the parents’ household size will include the student, parents, siblings and the parents’ other children. Federal Pell Grant: Designed to assist students from low-income households, the Pell Grant is the largest federal grant program offered to undergraduate students. To qualify for a Pell Grant, a student must demonstrate financial need by completing and submitting the FAFSA. A great deal of focus is being placed on increasing the size of Pell Grants, so it will definitely be worthwhile to complete the FAFSA this year. Federal Student Aid: In addition to state aid and the money that colleges make available to students in the form of grants and scholarships, federal student aid represents a major portion of each student’s financial aid package. This aid from the federal government comes in the form of grants, loans, and/or work-study to assist students with college or career school. Students have to complete the FAFSA to apply for this aid. Federal Work-Study: This program provides part-time jobs for undergraduate and graduate students with financial need. Students are awarded work-study by the school’s financial aid office and need to complete the FAFSA to confirm eligibility. FSA ID: This ID consists of a username and password which provides access to the U.S. Department of Education’s online systems. It can also serve as a legal signature when completing electronic documents. Both student and parent must have an FSA ID. They can be applied for at any time. Grants: A grant is a monetary gift for people pursuing higher education. It is often based on financial need and does not need to be repaid unless the student fails to meet eligibility criteria. Student Loan: A student loan is money that is borrowed from the federal government or a private source like a bank or financial institution for educational expenses. Loans must be paid back with interest. Merit–Based Aid: This type of financial aid is based on a student’s skill or ability. For example, a merit-based scholarship might be awarded based on a student’s high grades. Need–Based Aid: This is financial aid that students can receive if you have financial need and meet other eligibility criteria. You can’t receive more need-based aid than the amount of your financial need. As the summer progresses, I will introduce and explain more about the financial aid process. Remember that CFAA helps with every step, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Sign up for 15 Minute Power Chat to learn about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Summertime and the living might not be quite so easy for families with rising high school seniors who are in the middle of the college search. Although it certainly is exciting and fun for the student to have big dreams about which college to attend, the parents are far more likely to be thinking about the impact on their family budget. Before getting too far into the process, where the student absolutely falls in love with one particular college, it is best to have a frank discussion about what you family can realistically afford. Here are some tips to help assess your family budget as part of your college search: Think about where your family stands financially: This is really a challenging time to be thinking about spending big money on college. We have just come through a pandemic that altered many families’ financial situations through job loss, death, or medical bills. Now, we may be looking at a period of inflation, with rising interest rates taking a toll on already-stressed budgets. Families have to take all these factors into consideration when trying to determine how big their college budget is. Talk about how to pay for college: Families have a variety of financial resources they can access to pay for college. Some parents, grandparents, and students themselves have already saved a substantial amount of money in education savings plans. Others plan to use the next year to earn money they can contribute to the cause. Still others might think about tapping into home equity or retirement accounts, although these decisions are harder now in today’s more uncertain economy. Also, take a look at potential future expenses in terms of siblings attending college, or grandparents who might need extra help. The parents’ income at the time of college enrollment plays a big role in your family’s ability to pay future college expenses. Look at 2021 income and 2022 year-to-date income: After October 1, families will have the opportunity to file the Free Application for Federal Student Aid, which will determine their eligibility for financial aid for the 2023-2024 academic year. The official FAFSA will use information from your 2021 federal income tax returns as the primary source of determining your eligibility. If your financial situation changed in 2022, be prepared to make a case for additional aid. You can use the Federal Student Aid Estimator to get a rough idea of eligibility now, and compare the results to the actual costs at the colleges to which you will apply. Be wary of student loan borrowing: Many families do use student loans to cover some of the costs of college, but be aware that this could become more expensive in the current interest rate environment. Look at the students who are already struggling with student loan debt now, because they simply borrowed more than they could realistically afford to repay. Only borrow what is absolutely necessary, and use available student loan funds wisely. Compare future repayment amounts against future earning potential to determine how heavy your debt burden will be. Parents should also make students aware of how much of the future payment responsibility they will be expected to shoulder. Always look for scholarships: Scholarships are one of the best ways of finding additional money to help pay for college. Start searching now, and continue through the college years.   Help your student make wise financial and emotional choices when it comes to college. Learning about money and family budgets may be the first of many great college lessons to come. Good luck! Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Rising seniors can set a CFAA new client free strategy session or a 15 Minute Power Chat to learn about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Another school year is coming to a close, and I hope everyone is looking forward to a great summer. Before you set your mind on vacay-mode, however, there are a few last minute financial aid details to manage, so you don’t lose your financial aid eligibility. Here is what high school juniors and graduating seniors need to do: Current High School Juniors/Rising Seniors: Your summer will probably be packed with college visits and college applications, but don’t forget that you will be submitting financial aid applications beginning October 1 – just about four months from now. Here are some steps you can take to get ready: Use a free scholarship searchto find scholarships for which you might want to apply. Some deadlines fall as early as the summer between 11th and 12th grades, so prepare to submit applications soon. FSA ID: Create a unique username and password that you’ll use to confirm your identity when accessing your government financial aid information and electronically signing your federal student aid documents. You can learn about the FSA ID and create yours now. You must create your own FSA ID; if your parent creates it for you, that’ll cause confusion later and will slow down the financial aid application process. Narrow down the list of colleges you are considering attending. If you can, visit the schools that interest you. Contact those colleges to request information and applications for admission. Ask about financial aid, admission requirements, and deadlines. Decide whether you are going to apply for admission under a particular college’s early decision, early action, or regular decision program. Be sure to learn about the program deadlines and requirements. Use the Federal Student Aid Estimator, and compare the results to the actual costs at the colleges to which you will apply. Graduating High School Seniors/Rising College Freshmen: You might already feel like a freshman, with just a few months to go before the actual experience begins. Here are some steps you can take to make sure your financial aid is on track: Decide Which Student Loans to Accept: Accept only the student loans with the most favorable terms and conditions; usually, those are federal student loans. If you are considering getting a state loan, school loan, or private student loan, learn about the differences between federal and other loans. If you have questions or don’t understand what types of loans are in your aid offer, contact the school for information about what you’re accepting and the repayment terms. Borrow only what you need! If your living expenses are not going to be as high as the amount estimated by your school, you can turn down the loan or request a lower loan amount. Your school will tell you how to do this in your aid offer. Inform Your School About the Financial Aid You Will Accept: Your student financial aid offer will include directions on accepting aid. Follow those directions carefully. You might have to enter the amounts you’re accepting in an online form and then submit the form. If you receive a paper aid offer, you might have to sign it and mail it back to the school. Accepting a loan or grant listed in the aid offer may involve additional steps, which vary depending on the type of loan or grant you’re receiving. Saying yes may be as simple as signing a promissory note or it may include entrance counselingif this is your first federal loan. Congratulations on successfully making it through another year. Have a great summer, and best of luck with all your college and future plans! Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Rising seniors can set a CFAA new client free strategy session or a 15 Minute Power Chat to learn about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.