FAFSA Question

[sbrylski]

I'm going through my financial aid records, and something seems odd to me. I was getting some unsubsidized loan money and some unsubsidized loan money for three semesters, which makes sense. Then I transferred to UW-Madison. My first semester I received 100% of my loan money subsidized. My second and third semesters I have received 100% of my loan money unsubsidized.

 

Just curious as to why it switches drastically like that. I mean, why would I have a semester with zero unsubsidized aid and then following all of it is unsubsidized? I figured it would be more balanced, or at least a smoother transition away from subsidized loans.

[ewizabeff]

There's a cap on how much you can receive in subsidized loans...but it's pretty high. That's the only thing I can think of, unless you only checked the unsubsidized loan on your acceptance form.

[temke]

unless you only checked the unsubsidized loan on your acceptance form.

this is my thought also. i remember always getting offered both...even in my 5th year at madison.

[whizkid]

Did you fill out the FAFSA? Are you independent or not for FAFSA purposes? If not, did you have sibling(s) graduate/drop out. Your folk's expected contribution goes up per kid the fewer kids concurrently in college.

[sbrylski]

Did you fill out the FAFSA? Are you independent or not? If not, did you have sibling(s) graduate/drop out. Your folk's expected contribution goes up per kid the fewer kids concurrently in college.

My sister did graduate last spring, but the FAFSA contribution actually increased both in amount and in percentage of tuition this fall. Her graduation did coincide with the switch from 100% subsidized to 100% unsubsidized, so that might explain that.

[T B0NE 10]

I'm going to be doing the FAFSA for the first time....

 

My parents said they don't get their 2008 taxes until February.

 

Does everyone wait that long to do them or what do you use then?

[mothershipconnection]

Yeah, you're cool if you do them in February. Try to get it in as soon as possible, though. You may have a better shot at grants and whatnot if you get in line early.

[sgtcluels]

You can't file for taxes till W2s are mailed, which is at the latest, Jan 31st.

[whizkid]

Complete Your Tax Return!
We recommend that you (and your parents if you are a dependent student) complete your tax return before filling out your FAFSA. This will make completing the FAFSA easier. If you have not filed your tax return yet, you can still submit your FAFSA but you must provide correct income and tax data once you have filed.

fafsa.ed.gov

We attended a fafsa session at this fall's Milwaukee college fair. The fafsa official recommended submitting the application as soon as possible, like 1 minute after midnight on the 1st. Grant money goes first and they look at the applications in the order they are received. If you/your parents only have wages, interest, dividends etc. you can pretty much figure out your return(s) from December paystubs/statements.

Also, make sure you don't go to www.fafsa.com. It's a pay ripoff site.

[PlayerHader]

I didn't do my Fafsa until well into the summer last year and still got good grant money. Money may be tighter this year, but I certainly wouldn't fret about not getting it in until February or even March.

[JJHardy7]

You can't file for taxes till W2s are mailed, which is at the latest, Jan 31st.

 

Or you can use your last pay stub from 2008.

[T B0NE 10]

I'm getting confused here....So should I wait until my parents get all their taxes done? Or use last years? Or what?

[whizkid]

I don't think anyone here can say 100% whether waiting will affect any non-loan awards and if so how much. I just know that next year when my son will need to apply, it will be done as soon after Jan. 1 as possible to maximize chances. It will certainly be in my best interest to do so as I'd like to see him get at least his bachelor's with little or no debt and it may help to minimize our contribution to achieve that. I'll be able to do that because our income is all job earnings, interest and dividends so I'll be able to supply the financial info before actually filing taxes. It will be worth the effort. If your parents are self-employed, own a farm etc. it does make it more difficult to file the application before filing taxes.

If you haven't done so already, I think it's worth following the fafsa.ed.gov link below to fully understand the process. Part of what I quoted below says If you have not filed your tax return yet, you can still submit your FAFSA but you must provide correct income and tax data once you have filed. There are phone numbers listed on the site if you have questions.

[hawing]

I too would lean toward completing as much of the form as you can, as soon as you can.

[thablingster]

T BONE, I would advise that if you have the opportunity to wait until you or your parents have filed your 2008 federal income tax return you should do so, as it will make filling out the FAFSA much easier. It may also reduce the possibility that your FAFSA is selected for a process called verification by the Department of Education. It is a fairly random process, but the more complete the FAFSA is the better. Realistically, you can fill out the 09-10 FAFSA from any time between now until June 30, 2010. It really depends on what your school or prospective schools will make as their preferred consideration dates.

 

In regards to sbrylski06's question, there are several answers as to why you would have received all subsidized loans one semester and then all unsubsidized the next. The fact your EFC may have changed from your 07-08 FAFSA to your 08-09 FAFSA is the most likely cause, as the higher your EFC the more it will affect your "need" calculations and thus your eligibility to receive subsidized loans. If your need is lower than the amount of subsidized loans you can receive, you are eligible to receive the remainder as unsubsidized loans.

[sbrylski]

The fact your EFC may have changed from your 07-08 FAFSA to your 08-09 FAFSA is the most likely cause, as the higher your EFC the more it will affect your "need" calculations and thus your eligibility to receive subsidized loans. If your need is lower than the amount of subsidized loans you can receive, you are eligible to receive the remainder as unsubsidized loans.

 

This explanation would mean my need in spring of 2008 was higher than the maximum I could receive, hence the awarding of a complete subsidized loan. And then the following semester, my need bottomed out to zero, hence the offering of a complete unsubsidized loan.

 

The only thing that changed between these two semesters was that my sister graduated. I was at the same school with the same amount of tuition, while incomes and taxes for both me and my parents had no significant changes (IIRC.)

 

I guess that makes sense, its just more drastic of a change than I expected.

[hawing]

The only thing that changed between these two semesters was that my sister graduated.

I haven't been a consumer of student financial aid in almost 20 years, but almost everyone I hire has work-study funding (i.e. among the neediest of the needy at UW). Just from that vantage point, I've seen numerous occasions where the graduation or other departure of a sibling from college has been a financial aid kiss-of-death. When a student employee notifies me that s/he has lost work-study funding, my first two questions are, "did you get a scholarship or grant?" and "did someone in your family finish or leave school?" The answer is usually yes to one of them.

 

Assuming you weren't work-study eligible to begin with, Sam, I think your sister's graduation may well be the thing that changed the subsidization of your loans - even though it's not necessarily logical to assume that now that your sister is out of school, your parents automatically have thousands of dollars available specifically for your education.

[thablingster]

Sbry, if your sister graduated it could also be possible that when you and your parents filled out your 08-09 FAFSA (which would have been used for the past fall semester and the current spring semester) she was removed from the household size as well, while for the 07-08 FAFSA (which would have been used for the spring semester in which you received subsidized loan funding) she would have been included in both. Those two changes alone have been known to significantly affect EFC's.

 

From what it sounds like that may be the case, and it did wreak havoc on your EFC. It is pretty typical for dependent students to have higher EFC's due to the inclusion of parent income. You could always ask your Financial Aid Officer, too. You are entitled to the information.

[sbrylski]

Well darn. Thanks for the help guys.