Unlocking FAFSA money for college easier than ever
Who wouldn’t want to spend an hour or so trying to get extra cash for college?
Well, pretty much any parent or student who is dreading filling out the Free Application for Federal Student Aid. Families who expect to have a student in college in the fall of 2020 can start applying now.
“Those who have never completed a FAFSA likely have heard stories about how difficult and time consuming it is to complete,” said Rick Shipman, executive director of financial aid at Michigan State University.
“Well,” he said, “things have changed.” The online system can help you reduce errors and speed up the process, he said. The program for filling out the form also uses a process called “skip logic” so only questions that are relevant to you will pop up during the process.
Experts advise filing as early as possible. Some awards are first-come, firstserved.
“If you file early, you are considered for the greatest number of aid programs because money runs out in some programs,” Shipman said.
The FAFSA filing season opened Oct. 1 for financial aid covering the 2020-21 academic year. You’ve technically got until June 30, 2021, to meet the federal deadline but you want to take into account other, possibly earlier, state deadlines for aid too. The deadline in Michigan is March 1, for example. Schools also may have their own deadlines, so check with the school you’re interested in attending.
More FAFSA tips:
Remember, it’s free
The federal financial aid form is essential if you want to qualify for federal student loans, work-study programs and grant money. You don’t pay a dime to fill out the free application. See www.fafsa. gov.
Remember, you have to submit a form each year you’re in school to qualify for financial help. You “must renew each year to be eligible,” said Eva McGregor Dodds, an independent college counselor based in Franklin who is affiliated with California-based Collegewise.
You can file the FAFSA online at www. studentaid.ed.gov or through the myStudentAid mobile app.
Another tip: Several private colleges and state universities also require that one file a CSS Profile to qualify for need-based institutional scholarships, McGregor Dodds said. She noted that students who want to be considered for institutional aid, such as grants and merit scholarships, at the University of Michigan need to fill out a CSS Profile which also opens Oct. 1.
Parents pay a fee to outside counselors for advice, but the Collegewise site also has some free tips at www.collegewise. com/resources.
Avoid mistakes, use the IRS data tool
While there’s much buzz about the October kickoff, you don’t want to rush and then get sloppy filling out your data. Data entry mistakes will slow down the process, warns Erin Powers, a spokeswoman for the National Association of Student Financial Aid Administrators.
Students also can reduce errors by using the Internal Revenue Service’s online Data Retrieval Tool to import financial information directly to the FAFSA, rather than entering it manually, Powers said. The tool transfers data directly from your federal income tax returns.
If you don’t use the data retrieval tool, you must refer to a copy of your 2018 tax return that you have in your possession. If you don’t have a copy, you can get one by downloading a tax transcript online at www.irs.gov.
Other mistakes to avoid: Don’t leave spaces blank. Rather, enter a zero or “not applicable” if it doesn’t apply. Don’t use commas or decimal points in numeric fields, instead round to the nearest dollar. Don’t use a nickname: Your name must be listed on your FAFSA as it appears on your Social Security card.
Another tip: When it comes to the amount for federal income tax paid, look at your income tax return forms from two years prior, not your W-2 form.
Watch out for a technical glitch
Students and their families who use an Apple device — mobile or desktop — are being warned that they may encounter errors on some FAFSA fields if the “smart punctuation” feature is enabled. You may need to turn those features off or use another device, such as Internet Explorer on a desktop.
“This feature changes apostrophes and quotation marks to invalid characters that the FAFSA form cannot recognize,” according to the Studentaid.ed.gov site run by the U.S. Department of Education.
Powers said: “The Department of Education has created a page on its Student Aid website dedicated to helping students resolve the issue.” The page is titled: “Why am I getting an error message when I use apostrophes or quotation marks on my Apple device?” See www. studentaid.ed.gov for tips.
Make sure to allow pop-ups
You’re going to need to ensure that the pop-up blocker on your browser allows you to get alerts and pop-ups from fafsa. ed.gov while you’re completing the online form.
Some of your money won’t count against you
One common, harmful mistake people make in completing the FAFSA involves reporting retirement funds or the net worth of the family home as an investment, said Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com.
As part of the FAFSA process, you do need to report the value of savings accounts, stocks and bonds, and real estate, but not the value of the home where your family lives. And remember, you do not need to report the value of your pension plan, 401(k), 403(b) or IRAs.
Don’t lie about your money
If we learn anything out of the 2019 college admissions bribery scandal, it should be that cheating can get you into trouble.
“Lying on the FAFSA can be punished with up to five years in prison and up to a $20,000 fine (more if prosecuted under mail fraud statutes),” Kantrowitz said.
“Colleges with honor codes might expel the student,” he said. “The family will also be required to return all the undeserved financial aid.”