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pay the way
maximizing federal aid
TIPS FOR MORE
FINANCIAL AID
CONSIDER HAVING YOUR
CHILD SAVE IN YOUR NAME.
Since students are expected to contribute
20 percent of their savings towards their
education versus their parents’ 5.64 percent
expected contribution, it can be wise for
students to save in their parents’ names
while in high school and college, thereby
boosting the amount of loans and grants
he or she may qualify to receive.
DO NOT CONVINCE YOUNGER
CHILDREN TO HOLD OFF ON
COLLEGE.
The idea of having multiple children in
college at the same time may seem
terrifying, but the FAFSA does use the
number of children you have in college
when calculating your expected
contribution. If you have a child who is
expected to start college only a year or
two after an older child, go ahead and let
him or her apply as the amount of aid you
receive will increase to meet the increased
financial burden.
L20 |
Spring 2016
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www.potentialmagazine.com
If you are a parent of a collegebound high school student, you are
likely wondering how much
financial aid your child can secure
for college. The most commonly
used form of financial aid comes
from federal loans and grants,
which require you to fill out a
FAFSA- Free Federal Application
for Student Aid for consideration
(www.FASFA.gov). To ensure the
best possible federal financial aid
package possible,
consider these tips.
PAY OFF YOUR DEBTS.
Unfortunately, the FAFSA considers your
income and assets but does not consider
how much of your money is tied up in
bills. Additionally, loans that have interest
rates that depend on your credit score
can be affected depending on your credit
history and your current debt. Therefore,
it may be wise to pay off credit card and
loan debt to both increase eligibility and
lower your interest rates on loans.
INCLUDE UNBORN BABIES
ON YOUR FAFSA.
Part of federal financial aid depends on
how many children you support, and the
age of dependent children does not matter.
This means that if you are pregnant when
you are filling out your child’s FAFSA, you
can include your soon-to-be baby towards
your dependent total, which lowers your
expected contribution and can increase
your child’s loan and grant amounts.