The time for
completing the FAFSA is getting closer and closer. The earliest that a student can apply for
financial aid for the 2018-2019 academic year is October 1, 2017. This is the time of year where reality can
start to set in for high school seniors and their parents. As students are applying for admission to
colleges, applying for scholarships (hopefully), and completing financial aid
applications, many families are just now realizing how expensive college can
be. Some families are wondering if they
will be able to afford the college that their student wants to attend.
It might be
tempting for families to misrepresent their income or asset information when
completing the FAFSA in order to receive more financial aid. Here are some
reasons why this is not a good idea…
1
- It is illegal. When the student and parent sign the FAFSA, they are “certifying that all of the information provided is true and complete to the best of their knowledge, and, if asked, will provide information that will verify the accuracy of the completed form”. This information could include tax returns, bank statements, and investment records, and must be provided to the financial aid office at the college the student will attend. The certification statement also states that “If you purposely give false or misleading information, you may be fined up to $20,000, sent to prison, or both”.
- If a student receives financial aid with false information, that money will have to be returned and the student could face suspension or be expelled from the college.
Sometimes,
parents are worried that the money they have in cash, savings, and checking
will keep their student from receiving financial aid. They worry that because they got paid the day
before they complete the FAFSA, it will negatively affect the student’s
eligibility. Or, they worry that the
$10,000 they have in an emergency fund will be held against them. In reality, only a portion of the parent’s
assets will be looked at in determining the student’s eligibility.
For example, in a 2 parent household where the age of the oldest parent is 45 years old, if the parents have $60,000 in assets, only $4,824 of that is included in the EFC (expected family contribution). Most of the EFC (used in determining the student’s eligibility for aid) is from the parents income. Anyone can view the exact EFC Calculation to get an understanding of how their income and asset information is looked at. You would go to www.ifap.ed.gov and do a search for the 2018-2019 EFC Calculation.
For example, in a 2 parent household where the age of the oldest parent is 45 years old, if the parents have $60,000 in assets, only $4,824 of that is included in the EFC (expected family contribution). Most of the EFC (used in determining the student’s eligibility for aid) is from the parents income. Anyone can view the exact EFC Calculation to get an understanding of how their income and asset information is looked at. You would go to www.ifap.ed.gov and do a search for the 2018-2019 EFC Calculation.
There are
honest ways to maximize the student’s eligibility for financial aid. Here are
two articles that provide another view on this topic:
It provides
some excellent methods parents and students can use to increase financial aid
eligibility while not misrepresenting their information. Please remember that the staff at ICAN is
happy to assist you as you go through this process.
John - ICAN Waterloo and Hiawatha Centers
