FAFSA woes

[SquirrellyMama]

I'm working on the FAFSA, and I just got to the parent's assets question. Right now we have an extra 15,000 in the checking from insurance checks due to storm damage. That money will be gone within the month to fix our damaged roof. In the grand scheme of college payment $15000 isn't that much, but will it hurt us on the application?

Kelly

[Lanny]

I suggest that you do not file the FAFSA at this time. Wait, until the roof has been repaired and the $15K USD has been paid to the company that repairs the Roof.  That may reduce the EFC and/or COA for your student.

[sassenach]

Ugh, I didn't even think of that. Dh just sold his motorcycle to pay for some home fixes. Yeah, I think I will need to wait to file also.

 

[Guest]

We did it this weekend as well. DH commented that we should go buy a new car or two first. I don't think the FAFSA is going to amount to a hill of beans for DD, though-every calculator I've done says that our EFC is higher than the cost of attendance after automatic merit aid at her most likely schools. 

[katilac]

This, I tell myself, is why I never file FASFA in October. 

6 minutes ago, dmmetler said:

We did it this weekend as well. DH commented that we should go buy a new car or two first. I don't think the FAFSA is going to amount to a hill of beans for DD, though-every calculator I've done says that our EFC is higher than the cost of attendance after automatic merit aid at her most likely schools. 

FASFA has a pretty generous asset protection allowance, so spending down mostly helps people who have quite a bit of savings or who are single parents. I don't remember the amounts, but I do seem to remember that they don't just cut the number in half for single parents, I think it's a good bit less. 

This will be my last year filing. Our EFC is higher than COA, but we are required to file for the state scholarship. 

[GoodGrief]

4 hours ago, SquirrellyMama said:

I'm working on the FAFSA, and I just got to the parent's assets question. Right now we have an extra 15,000 in the checking from insurance checks due to storm damage. That money will be gone within the month to fix our damaged roof. In the grand scheme of college payment $15000 isn't that much, but will it hurt us on the application?

Kelly

Yes, hold off on filing. I always filled ours out toward the end of the month when the accounts were at their lowest.

That said, $15,000 may or may not change your numbers much, depending on the rest of your situation.

[RootAnn]

1 hour ago, katilac said:

FASFA has a pretty generous asset protection allowance, so spending down mostly helps people who have quite a bit of savings or who are single parents. 

Not true anymore,  @katilac.

It is only $9400 this year for a two-parent household. (For 65 yr olds. For 45 yr olds, it is only $5500.)

https://guidedpath.net/fafsa-college-savings-allowance-takes-a-steep-tumble-in-2020-2021/

Last year, it was $18,900. The year before was $33,600. The asset protection is pretty darn small this year.

Edited to add a spreadsheet woth more age ranges.

https://docs.google.com/spreadsheets/d/e/2PACX-1vTQS-A7Nrc7vsy5WEA2SOAeA-x20OP4tAV7rfR3fQPmhHv2RPkr9FOv0TrZX8UwuA/pubhtml

Edited October 5, 2020 by RootAnn
Typo

[RootAnn]

Sorry, that's last year. This year, it is $10,500 for a two-parent household - depending on the age of the older parent. $6600 for 45 yr olds.

https://www.ncan.org/news/512330/How-the-Asset-Protection-Allowance-Affects-Financial-Aid.htm#

Edited October 5, 2020 by RootAnn

[G5052]

Yes, I did it every year for one or both kids when they were at the community college because they only did annual scholarships. It seemed like such a racket as life ups-and-downs occur, but thankfully they both qualified for academic scholarships. They required the FAFSA whether it was academic or need-based, so we did it. 

Then when they transferred to the four-year, we tried for the academic transfer scholarships, but neither one got one. Later we tried for need-based because my income was poor, but I did have some savings, so no. 

So this fall my income is better, and I didn't bother. One is paying his own way anyway and is graduating, and one is paying part of her way. It works. 

[mom31257]

I would wait or not report it. Technically, that money is not even yours. As long as you have records to show that, I would have no qualms not reporting it as part of your true balance. 

[katilac]

23 hours ago, RootAnn said:

Not true anymore,  @katilac.

It is only $9400 this year for a two-parent household. (For 65 yr olds. For 45 yr olds, it is only $5500.)

Oh, man, that is pitiful! 

Saw your correction; it remains pitiful, lol. 

 

[G5052]

19 hours ago, katilac said:

Oh, man, that is pitiful! 

Saw your correction; it remains pitiful, lol. 

 

LOL, mine as a single parent is $2300. More if it's a formula and not stair-stepped like the linked sheet, but REALLY? 

Not even worth trying. 

[Acadie]

Hmm, can you call or message FAFSA and inquire about insurance payouts slated for repairs? I don't think that should enter the calculation, and I hope that's specified somewhere. 

If not, I'd seriously consider waiting to file, as long as you don't miss any deadlines, or paying a large deposit now if you really know and trust the company that will be doing the repairs.