FAFSA - should we bother

External Since: Nov 25, 2007 Posts: 1

New to this group and financial aid. My wife used one of the on-line tools
and our EFC is $63K. None of the schools my daughter is applying to are
anywhere near that expensive so is it a waste of time to complete the FAFSA
application? A number of our friends in similar situations did not bother to
submit but some were due to privacy concerns. Guidance appreciated.

Regards.... Steve

External Since: Jun 25, 2003 Posts: 261

First, be aware that some of the online tools over-simplify their
questions so the EFC may not be completely accurate. Not to mention that
sometimes the answers one enters may not be the correct ones. A few
common examples: The family house is not a reportable asset on the
FAFSA, and neither are family-owned businesses with under 101 employees,
nor money in official retirement programs (IRA, 401k, etc).

But assuming that there were no errors, a 63K EFC eliminates any
need-based aid at any college today.

If, however, you would like an unsubsidized non-need Stafford loan, you
still need to file the FAFSA. Like the subsidized Stafford loan, it is
$3,500 for a freshman, $4,500 for a Sophomore, and $5,500 for Juniors
and Seniors; it is in the student's name alone (no parent involvement);
and does not have to be repaid until 6 months after finishing school. It
differs from the subsidized need-based Stafford only in that it is not
interest free - 6.8% fixed rate. It is useful for those who don't want
to have to put up all the money up front, or feel that having the
student with a financial involvement is a good idea. If you don't want
either, then you don't have to file the FAFSA.

As for the privacy issue, federal law mandates that all FAFSA data is
confidential. One gets better protection of personal information
dissemination than the similar information that goes on applications for
credit cards, car loans, and mortgages.

Unless one is absolutely certain that the EFC will be too high, it is
always suggested that a FAFSA be filed.

Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761

Steve Stein said the following on 11/25/2007 3:17 PM:
> New to this group and financial aid. My wife used one of the on-line tools
> and our EFC is $63K. None of the schools my daughter is applying to are
> anywhere near that expensive so is it a waste of time to complete the FAFSA
> application? A number of our friends in similar situations did not bother to
> submit but some were due to privacy concerns. Guidance appreciated.
>
> Regards.... Steve
>
>