DD is a returning sophomore student who recently noticed on her student portal financial projection for Fall 2019 that she was being offered subsidized student loans. Now I’m thinking we made a mistake on the FAFSA as we used the IRS import tool. I know that it doesn’t take into account voluntary retirement contributions which should be added back in, for example. I’m relatively confident that she shouldn’t be eligible for the subsidized loans based on past FAFSA results for her and her older sister.
She declined the loans. Is that enough since she isn’t getting/taking any financial aid or do we need to go to the trouble of correcting the FAFSA.
I don’t know the answer ; but in our case, we did something similar. We didn’t input the parents income; filled out the FAFSA form in a huge hurry; he was eligible for federal grants and loans for the first time ever. We were NOT taking out any loans for him, so when we were asked for verification, we just didn’t do it. Nothing ever came of it. We didn’t fill out the form the next year. That’s our story . . . . sort of similar.
I would let the school know. Send an email that covers you. “We realized we forgot to add in the pretax 401k contributions and that these weren’t imported with the DRT. She is not taking any FA, including the subsidized loans. For that reason, we are not correcting the FAFSA.”