Home » Finance

Basics of the FAFSA

Aug 17, 2007
The free application for federal student aid, or FAFSA, is the first step towards finding financial aid. For those of you who want financial aid, you must complete this form prior to each year of college. You can find a paper copy at any local library, high school, local college or university, or online. If you would like to fill out the form online, you can visit the FAFSA website for information on how to do so. At first glance, the application may seem complex, but it really is not. If you have all the necessary information, completion is easy.

Believe it or not, the best time to be thinking about applying for financial aid is during your junior year in high school. The reason for this is that the FAFSA is going to ask about how much money you have, or have made, in the year prior to attending college. So, what does this mean? Well, you can ask yourself some questions. Is it essential that I work my senior year of high school? If either of my parents are self-employed, can he, or she, wait an extra year before giving him, or herself, a raise? Do my parents need to buy a new house or cash out any stocks or bonds right now, or can it wait? Of course, this means you will need to talk to your parents. But, if the result is that you'll be able to attend the school of your choice, its worth it!

One note with this, if you do absolutely need to work the year preceding college, try to keep your income below $2,500. Making more than that can seriously affect the amount of financial aid you'll receive. In fact, when calculating a students' financial need for financial aid, any income earned by the student over the amount of $2,500 is assessed at 50% when calculating a students need for financial aid.

How does this work? Well, let's look at a very basic outline of how financial need is calculated. Financial need equals the parents' contribution, plus the student's contribution. The parents' contribution equals the adjusted gross income, plus any untaxed income, plus any assets, minus federal and state taxes, minus an income protection allowance, minus the asset allowance. The student's contribution equals the adjusted gross income, plus any untaxed income, plus any assets, minus federal and state taxes, minus an income protection allowance, minus the asset allowance.

So, when you think of the word, assessed, think of the income protection allowance. For a parent, 65% of their income is considered a protected allowance, and only 35% of that parents income will be considered when determining a student's financial need. However, for the student, were looking at 50%. Keep in mind, this is a very basic calculation. There are other factors that are considered, such as the number of supported dependents, and the number of children in college.
About the Author
ProfessorNow.com offers free educational courses in an easy to follow format in various subjects. To view a free online course covering the subject of this article, please visit ProfessorNow.com.
Rating:
Please Rate:
(Average: Not rated)
Views: 220
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources