FresnoMom

ORWsons

If you make under $50K and are eligible for reduced lunch/WIC and filled out the IRS 1040A.....I think you qualify for the Simplified Needs Test. Do the research (www.finaid.com is a good site) and make sure you know what you need to know before filling out the FAFSA next year.

If your son is a junior, then this is his "base year" (Jan 1 junior year to Dec 31 senior year). Just make sure you understand the rules and you don't do anything goofy (meaning: some seemingly innocent financial decisions can impact your EFC).

You can also pick up a 2007-2008 FAFSA on the Web worksheet at the library. This way you can get an idea what the questions are and it makes filling out the real thing a lot less confusing.

I was going to take a Financial Aid class through UCLA extension (decided not to) but the required text was Collegeboard Meeting College Costs. I haven't read the book yet, but it looks helpful.

OverRunWithSons

My son is in 10th grade right now. Give me some examples of "seemingly innocent financial descions" that can affect the EFC in that Base year? Do you mean like allowing him to work a summer job - in case it would bring his income & ours combined over the $50,000 mark? I was going to let me get a job THIS summer ONLY. (Between 10th & 11th grade) as this would not affect our income. Good idea? Thoughts?

Chedva

For example, if there are any savings in your son's name or in a UTMA account ("Mom as custodian for Junior"), you should figure out how either to spend it or to transfer it into your name. Assets in the student's name are "taxed" at 20% or so available for college, while assets in the parent's name are "taxed" at 5% or so.

A job between 10 & 11 grades won't affect FAFSA, except to the extent that he saves the money in his own name. If he wants to save it, you should put it in your account and let him draw on it as needed.

swimcatsmom

The student can earn @ $3,000 in a year without it affecting the EFC. Anything over that is hit at 50%. So him getting a summer job should not be a problem. His earnings do not matter to the $50,000 - that is parents only. Any savings in the students name are hit at 20%. Savings in parents name are hit at @5.6%. However if you qualify for simplified needs test assets are not considered.
The links I posted to the formula guide and to finaid contain some useful info. As you have a while to go (wish I had thought to look at this stuff so far ahead!) make sure you recheck the rules/formulas every year as they are subject to change.

rlm919

I understand you are trying to learn the financial aid process but I think telling a kid not to work so he gets more financial aid is sending the wrong message.

OverRunWithSons

I am not telling him not to work, I just would not want to have him make a measley $1,000 & that set us up for being Over this $50,000 if the case-now that I see he can make $3,000 and it not affect anything, this helps. (though he would be lucky to even get a little over $1,000 at any summer jobs around here --very depressed area). If you seen how far we lived from town & How many trips we have to make it there & back, not to mention his other activities a day, you would understand he will hardly make anything (after taxes, gas, wear on the Suburban & time) for a few hours minimun wage. Plus we are constantly running him to other Church activities & Cross country activities. I have to decide if it is even worth it. If we lived in the city, it would be easier & more cost effective to get a small job & keep it year round. He almost needs his own car to accually work considering where we live, and I am not really ready to dish out that kind of money just yet. Everyone has a different situation. Please don't think I am out to screw the system here. But at the same time, I do not want to be stupid and have him earn another $500, then we do not qualify for the Simplified Needs test.

dt123

Honestly, I would tell my kid not to work if all he is getting after the FA hit is half minimum wage, and having to drive there, etc. Kids have to learn about the law of diminishing returns, too, you know.