College Confidential - View Single Post - For those who have a teenager working before Fasta..Help?

Chedva · 12-19-2007, 10:18 AM

OK, keep in mind that the system is VERY complicated. But in a nutshell -

Both parent and student income and assets must be reported on the FAFSA (not Fasta) forms. The calculations consider that about 20% of student's income/assets are available for college, while about 5% of parental income/assets are available for college. (That's because the student is not self-supporting, and the parents are!) I believe, however, that the first $3,000 of student earnings is "protected" and not considered as being 20% available.

What you've heard about the $50,000 issue has little to do with FAFSA. Some schools have announced that those earning $40,000 or less will receive full financial aid; some schools have eliminated loans for those families; some have eliminated loans for all students. That has nothing to do with FAFSA, which deals with federal money; these commitments are based on the schools' own funds. And these schools tend to be the most competitive to get into (Harvard, Princeton, Amherst, etc.)

For most private schools (including those mentioned above), families must file, in addition to FAFSA, the CSS Profile. That is a much more detailed form, looking for a lot more information. The determination of the family's EFC ("Expected Family Contribution") is different for the Profile than it is for the FAFSA.

A good place to start on learning the ins and outs of the system is FinAid! Financial Aid, College Scholarships and Student Loans. And you can also begin playing with the FAFSA at FAFSA4caster - U.S. Department of Education.

Good luck!

12-19-2007, 10:18 AM	#3
Chedva Super Moderator Join Date: Jan 2005 Posts: 7,455	OK, keep in mind that the system is VERY complicated. But in a nutshell - Both parent and student income and assets must be reported on the FAFSA (not Fasta) forms. The calculations consider that about 20% of student's income/assets are available for college, while about 5% of parental income/assets are available for college. (That's because the student is not self-supporting, and the parents are!) I believe, however, that the first $3,000 of student earnings is "protected" and not considered as being 20% available. What you've heard about the $50,000 issue has little to do with FAFSA. Some schools have announced that those earning $40,000 or less will receive full financial aid; some schools have eliminated loans for those families; some have eliminated loans for all students. That has nothing to do with FAFSA, which deals with federal money; these commitments are based on the schools' own funds. And these schools tend to be the most competitive to get into (Harvard, Princeton, Amherst, etc.) For most private schools (including those mentioned above), families must file, in addition to FAFSA, the CSS Profile. That is a much more detailed form, looking for a lot more information. The determination of the family's EFC ("Expected Family Contribution") is different for the Profile than it is for the FAFSA. A good place to start on learning the ins and outs of the system is FinAid! Financial Aid, College Scholarships and Student Loans. And you can also begin playing with the FAFSA at FAFSA4caster - U.S. Department of Education. Good luck!
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