Don’t Fear tHE FAFSA

Copyright 2024 Financial Aid Consulting

Howard Freedman

Financial Aid Consultant

www.financialaidconsulting.com

“Obstacles are those frightful things you see when you take your eyes off your goal.” Henry Ford

The FAFSA form resembles tax returns, loans, employment, and benefits applications. It is one of several data collection forms essential for calculating results.

Many families feel anxious about completing the FAFSA (Free Application for Federal Student Aid) and the potential implications of the outcomes. Despite ongoing efforts to simplify the process, it still makes families cringe at the thought of finishing it and fosters pessimism about their chances of receiving financial aid.

There is little to lose by completing one, as all eligible students are entitled to at least a federal Stafford loan, which they must repay. However, a commonly misunderstood aspect is that the SAI (Student Aid Index) represents the estimated amount a family should contribute to college for each academic year. It is simply an estimated average based on algorithmic assumptions. It does not guarantee a free college experience; the difference between the SAI for each college and the cost of attendance is known as Unmet Need. This difference forms the basis for each school’s decision on how much financial aid to award.

The SAI relies on algorithms that assess parental assets and the incomes of students and parents based on averages and assumptions. This may lead to an appeal of the financial aid offer. Often, a supporting narrative can enhance an appeal or prompt a professional judgment decision from a financial aid officer.

When I work with clients, I ask them to provide their tax return information, which is automatically downloaded and masked on the FAFSA. I analyze each line to gain a clearer understanding of their financial situation and to identify any additional items hidden within the downloaded data. I review all types of income, financial statements, and factors that could lessen a family’s financial needs. Some figures can be misleading and may raise red flags for colleges when they encounter conflicting information, particularly concerning omissions and excessive asset reporting.

Some colleges may require a more detailed CSS Profile, which is used to assess institutional financial aid. The profile includes information about home ownership, income over multiple years, specific details regarding employment and retirement funds, and a section describing any unique circumstances.

Keep in mind that you can’t win the lottery without a ticket. The FAFSA serves as your ticket for specific financial aid.