Unfortunately, I think a large number of parents and students get their financial aid information by asking family and friends. That's not always the wisest thing to do as regulations can change from year to year and there can be a lot of confusion when it comes to financial aid. I came up with a short list (5) of financial aid myths that I wanted to explain.
Myth #1
If I do not claim my student on my taxes for two years prior to them going to college, they will get more financial aid. That might have been partially true prior to 1992, however, since then, claiming a student or not on the parent’s tax return has no bearing on financial aid eligibility.
Myth #2
If I move out of my parent’s house, I do not have to include their information on the FAFSA. Moving out of a parent’s house does not, in and of itself, mean that a parent’s information is not used on the FAFSA. Usually a student must provide parent’s information until they either turn 24, get married, or have a child that they provide more than one half the support for.
Myth #3
If a parent or student has saved money for college, they will not get as much financial aid. Assets listed on the FAFSA do not have as large an impact on student’s eligibility as the parent’s income and household size. The way I look at it, any money saved for college by a parent or student is probably money they will not have to borrow in a student loan.
Myth #4
We make too much money so we will not qualify for financial aid. I recently assisted a parent in completing the FAFSA who earned over $800,000 a year. Obviously, they would not qualify for need-based financial aid, however, in order for their student to receive a large scholarship from the college, they had to complete the FAFSA. Also, in order to be considered for any student loans, a student must complete the FAFSA.
Myth #5
We cannot afford college; it is just too expensive. There are many types of financial aid available from many sources to offset the cost of education. Do not initially exclude a college based on the sticker price, but eventually look at cost vs. the financial aid they might offer.
There are many more myths out there about financial aid. What bothered me the most about the posts I read were that parents were actually doing some of these things (not claiming a student in high school so they could get more financial aid, for example) based on what they thought was accurate information.
PLEASE…if you have any questions about financial aid and the FAFSA, contact a professional at ICAN. You can contact us by phone: 877-272-4692 with your questions or to set up an appointment.
You can also get a lot of information from our website www.icansucceed.org and the following links:
I urge you to utilize our resources and not to rely on friends and family for financial aid information.
Myth #1
If I do not claim my student on my taxes for two years prior to them going to college, they will get more financial aid. That might have been partially true prior to 1992, however, since then, claiming a student or not on the parent’s tax return has no bearing on financial aid eligibility.
Myth #2
If I move out of my parent’s house, I do not have to include their information on the FAFSA. Moving out of a parent’s house does not, in and of itself, mean that a parent’s information is not used on the FAFSA. Usually a student must provide parent’s information until they either turn 24, get married, or have a child that they provide more than one half the support for.
Myth #3
If a parent or student has saved money for college, they will not get as much financial aid. Assets listed on the FAFSA do not have as large an impact on student’s eligibility as the parent’s income and household size. The way I look at it, any money saved for college by a parent or student is probably money they will not have to borrow in a student loan.
Myth #4
We make too much money so we will not qualify for financial aid. I recently assisted a parent in completing the FAFSA who earned over $800,000 a year. Obviously, they would not qualify for need-based financial aid, however, in order for their student to receive a large scholarship from the college, they had to complete the FAFSA. Also, in order to be considered for any student loans, a student must complete the FAFSA.
Myth #5
We cannot afford college; it is just too expensive. There are many types of financial aid available from many sources to offset the cost of education. Do not initially exclude a college based on the sticker price, but eventually look at cost vs. the financial aid they might offer.
There are many more myths out there about financial aid. What bothered me the most about the posts I read were that parents were actually doing some of these things (not claiming a student in high school so they could get more financial aid, for example) based on what they thought was accurate information.
PLEASE…if you have any questions about financial aid and the FAFSA, contact a professional at ICAN. You can contact us by phone: 877-272-4692 with your questions or to set up an appointment.
You can also get a lot of information from our website www.icansucceed.org and the following links:
- Schedule an appointment for information or FAFSA completion: www.icansucceed.org/apt
- View short videos or presentations on various topics: www.facebook.com/icansucceed/videos
I urge you to utilize our resources and not to rely on friends and family for financial aid information.
John - ICAN Waterloo and Hiawatha Centers
