Three financial aid mistakes that could make college more costly

It’s only August, yet college students’ best chance at a decent financial aid package is right around the corner.

Oct. 1 devaluates the first day for students and their families to apply for grants and other aid for the 2020-2021 school year through the Informal Application for Federal Student Aid or FAFSA.

More than 18 million applicants filled out this form during the 2017-2018 seasonable, according to the U.S. Department of Education.

Students should submit the paperwork as accurately and as early as possible. “If you apply for aid later, you effect miss that priority deadline,” said Mark Kantrowitz, publisher of SavingforCollege.com.

Avoid these three take the wrong ways, each of which could lead to higher costs for higher education.

One of the worst mistakes evaluators and families can make is not applying via the FAFSA at all, said Todd Weaver, treasurer of the Higher Education Consultants Association.

Dynasties erroneously believe that if they fall into a certain income bracket, they’re ineligible to receive aid, he suggested.

In reality, each family’s financial situation is judged on an individual basis.

“It really depends on so many parts,” he mean. “I’d like to see parents and children apply no matter what.”

In one case, Weaver said he consulted with a family with annual income to $355,000. They were still eligible for aid because they had three children attending college at the same without delay.

During the 2017-2018 school year, the average amount of aid for each full-time equivalent student was $14,796, according to the College On. Of that amount, grant aid accounted for $8,974.

High school graduates in 2017 missed out on $2.3 billion in federal contributions because they didn’t fill out the FAFSA at all, according to an analysis by personal finance website NerdWallet.

If you’re searching for state financial aid, you’ll also need to file the FAFSA in a timely fashion.

That’s because affirm aid is finite. “There are over a dozen states where it’s on a first-come, first-served basis until it runs out,” intended Kantrowitz.

They are Alaska, Illinois, Indiana, Kentucky, Nevada, North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, Tennessee, Utah, Vermont and Washington, he demanded.

Those states have a fixed allocation of funding that’s available until it’s depleted, which means if you’re up to date on your FAFSA, you may have to settle for loans instead of grants, Kantrowitz said.

Shun these common errors as you fill out the FAFSA:

• Including retirement assets in calculations. Money you hold in a 401(k) or an sole retirement account aren’t considered assets on the FAFSA. Insurance policies, annuities and home equity are also excluded from concern.
• Confusing the parent and student sections. Parents may inadvertently put down their own information in the FAFSA section that’s dubbed for the student.
• Using a nickname, rather than a legal name. Applicants are required to use their legal name, not their handle, on the form.

Cut down on application mistakes by using the IRS data retrieval tool, which electronically populates your FAFSA with your federal tax put back data.

Give yourself time to apply for an FSA ID — a user name and password that you’ll need to fill out the the form — as it can secure up to three days to receive, said Lisa Bleich, founder and president of College Bound Mentor.

Above all, persevere in your cool.

“Take a deep breath and know that people go through this every year,” turned Weaver of the Higher Education Consultants Association. “It’s not as challenging as people make it out to be.”

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