Before and During College: Beginning October 1, File Your 2018-19 FAFSA ASAP!

IMG_8872If you’ll have a student in college between July 2018 and June 2019, apply for financial aid on October 1 or as soon thereafter as possible. That’s when the 2018-19 Free Application for Federal Student Aid (FAFSA) first becomes available to you on the government’s secure FAFSA website.

Why hurry? Regardless of institutional FAFSA deadlines, some schools quietly use FAFSA submission dates to determine the order in which they award institutional grants and scholarships, so those submitting FAFSAs early may have a better shot at these limited funds. Also, if your FAFSA data are selected for verification, early submission gives you more time to gather and supply documents you need.

No worries if your student doesn’t yet know where she’ll attend college next year. She can direct her FAFSA to 10 different institutions, and more later if needed.

The 2018-19 FAFSA needs 2016 federal 1040 data. The easiest, most accurate way to get this is to use the IRS Data Retrieval Tool (DRT). For 2018-19, there’ll be an opportunity to do this in the FAFSA’s student and parent Financial Information sections.

If you previously submitted a FAFSA but your student qualified for nothing but federal loans, why submit again? Two reasons. First, even small changes in your family and financial situations can impact eligibility for need-based grants, scholarships, and part-time work study jobs. Second, your student won’t re-qualify for past loan awards without a new FAFSA.

There are online answers to various FAFSA questions you may have including, but not limited to:

All colleges require the FAFSA, but some may require other forms to apply for state or institutional aid. Check on this with the financial aid office wherever your student may attend.

Two final notes:IMG_8873

  • If you don’t yet have an FSA ID, you’ll need it to do the FAFSA. Establish it at FAFSA.ed.gov.
  • Be sure to do your FAFSA at FAFSA.ed.gov. Otherwise, you may get scammed into paying a fee to submit this free form.

Hard to believe it’s already time to apply for next year’s financial aid, isn’t it? But remember, the early bird gets the worm . . . and better yet, the financial aid!

College Affordability Solutions brings 40 years experience to advising families on issues related to financial aid. Got questions? Call (512) 366-5354 or email collegeafford@gmail.com for a no-fee consultation.

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Special Bulletin: Help’s Available for Current and Ex-College Students Affected by Hurricane Harvey

 

A little-known fact is that the U.S. Department of Education (ED) has policies in place to help currently-enrolled college students hurt by federally-declared natural disasters such as Hurricane Harvey. These policies also provide relief to disaster-affected ex-students and parents struggling to repay their federal loans.

A description of these policies, and what should be done to use them, is available on the Federal Student Aid (FSA) Programs’ Hurricane Harvey web page. Texas counties that have been declared federal disaster areas are listed on the Federal Emergency Management Agency (FEMA) Hurricane Harvey web page.

Here are some examples these policies:

  • Aid Eligibility: Harvey will no doubt undermine the ability of many families to come up with the money they planned to provide their students for the 2017-18 academic year. Students from such families should file the Free Application for Federal Student Aid (FAFSA) to request aid. If they’ve already filed their FAFSAs, students should contact their campus financial aid offices to learn what documentation is needed for them to request “professional judgment” reviews that can determine if they qualify for additional financial aid.
  • Damaged or Lost Documents: Sometimes students are required provide certain documents before getting their aid to verify the accuracy of their FAFSA data. If these documents have been damaged or lost due to Harvey, students should notify their financial aid offices. ED has given those offices the authority to not require those documents in such situations.
  • Dropping Out: Some student who’ve already received their fall financial aid may need to drop out to go home and help their families recover from Harvey. Such students should contact their financial aid offices and let them know why they are dropping out. In these circumstances, ED allows schools to waive a regulatory requirement that usually compels drop-outs to pay back federal grants received for the fall.
  • Temporary Postponement of Loan Payments: Many ex-student and parent borrowers are likely to find their ability to make federal educational loan payments disrupted because Harvey adversely affected them. Such borrowers should contact the “loan servicers” (contractors Washington hired to collect their federal debts) and request “administrative forbearances.” These forbearance allow affected borrowers to postpone their federal education loan payments for up to three months. Ex-students can get contact information for their loan servicers through the government’s National Student Loan Data System.

In the wake of all the problems stemming from Hurricane Harvey, current and ex-student borrowers who need help should review and use these policies!

Contact College Affordability Solutions at (512) 366-5354 or collegeafford@gmail.com.

Special Bulletin: Tell Your Congressperson to Increase Federal Student Aid Appropriations

The U.S. House of Representatives’ Committee on Appropriations recently voted to send HR 3358 to the full House for debate and a vote. This bill appropriates funds forIMG_7979 federal student aid programs for federal Fiscal Year (FY) 2018.

Here’s a summary of HR 3358’s key financial aid provisions as currently written. But they’re not final yet, and you should tell your congressperson what you think about them. Visit during their August recess, or call or write them. For their contact information, go here and enter your zip code.

Federal Pell Grant

This program provides grants of $600 to $5,920 to the nation’s neediest students. It has a $4.3 billion surplus that could be used to increase the size of these grants or provide grants to additional needy students.

HR 3358 would reduce this surplus by $3.3 billion and keep Pell Grant amounts the same as they were in FY 2017. With inflation, this would reduce the Pell Grant’s “purchasing power” — the portion of college-related expenses covered by Pell. Furthermore, it would not provide Pell Grants to any more students.

Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOG goes to the poorest Pell Grant recipients — mostly those with family incomes below $30,000 per year.

HR 3358 would put the same amount into FSEOG for FY 2018 as that program received for FY 2017. FSEOG would be unable to help any additional students and its purchasing power would diminish

IMG_7978Note: As Pell Grant and FSEOG purchasing power decline, it’ll be necessary for colleges and states to divert more of their grant and scholarship dollars to help Pell and FSEOG-eligible students. This would reduce the numbers of college and state awards available to students who are not needy enough to receive Pell and FSEOG, but who still need plenty of financial assistance to go to or remain in college.

Federal Work-Study (FWS)

Hundreds of thousands of needy college student get part-time jobs through FWS. Most of these jobs are on-campus and many are related to students’ majors.

The administration proposed to cut FWS appropriations by 50%. But HR 3358 rejects this proposal and keeps FY 2018 FWS funding the same as it was for FY 2017. Still, there would be little or no opportunity for additional numbers of students to secure FWS jobs unless the program receives more funding.

Time to Act!

HR 3358 could affect your student’s financial aid even if he doesn’t receive Pell Grant, FSEOG, or FWS. So don’t sit on the sidelines! Make your voice heard!