If you are the parent of a high school student, you've probably seen news reports of millennials struggling with student loan debt. You've heard that college costs have gone up dramatically.
Deadlines Are Important -If you file your forms after the deadline, your child may receive less aid or none at all. You can find deadlines and requirements on the schools' financial aid webpages to which your child is applying.
Aid Is Based on Current Assets and Income From Two Years Ago - Assets such as bank accounts and investments are also considered. Also not considered are the house you live in and your retirement accounts and pensions.
Your Child's Money Counts More Than Yours - Your college-bound child is expected to use a higher percentage of his or her money—about 20 percent—than you are.
If You Are Divorced, It Matters Where Your Child Lives - When the parents are divorced, the FAFSA only asks for information about the custodial parent—the one your child lives with the most.
Step Parents Income Count - If you are the custodial parent and you have remarried, you will report your spouse's income and assets, too—even if your spouse doesn't intend to contribute anything to your child's college education.
Beware of Raiding Retirement Accounts - If you withdraw money from a 401(k) or IRA to help pay for college, it will be considered income in the year you take it out.
Don't Let the Sticker Price Scare You - To maximize your aid eligibility, stay on top of individual school deadlines and requirements, and file your form(s) as soon as you can.
Download Best Books For Higher Education Books, Study Materials & More