Q: Do you need to be a matriculated student to receive a MEFA loan? I want to register for three classes, but haven't been accepted into a program yet.
A: You do need to be a matriculated student to be eligible for a MEFA loan. You must be enrolled at least half time in an accredited degree-granting program at a non-profit college or university.
Deadlines
PIN Numbers
Updating
Divorced/Separated Circumstances
Types of Financial Aid
Special Circumstances
What Counts as an Asset or Income?
Effect of Outside Awards or Awards After Initial Decision
CSS/Financial Aid PROFILE® Specific
Eligibility Determination
Deadlines
Q: If you miss the date to submit the CSS/Financial Aid PROFILE® (it was November 15 and we missed it), can you still ask for financial aid through the FAFSA?
A: November 15 is likely an early decision financial aid deadline for a certain college. Call that particular college and ask them if it still makes sense for you to file the PROFILE® form. It likely does. If your student is applying to other colleges that require the PROFILE®, it makes sense as well. You should look at the financial aid deadlines for the other schools. And, yes, you should absolutely file the FAFSA once the 2013-14 form is available online after January 1, 2013. All colleges require the FAFSA to award federal financial aid. Again, make sure you file the FAFSA by the earliest deadline (of the colleges on your student’s list). Check out college websites or call the colleges to find out their deadlines.
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PIN Numbers
Q: Regarding the federal PIN needed for a parent to sign the FAFSA, I already have a PIN from previous FAFSA applications for my own college financial aid. Do I need to apply for a new PIN, or can I use the same PIN?
A: You may use the same PIN, but keep in mind that PINs expire after an 18-month period of non-use. So if you have not used your PIN in the last 18 months, you will have to apply for a new PIN. But if you have used your PIN recently, you should be all set.
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Updating
Q: We learned that if you submit the FAFSA as close as you can to Jan 1, based on 2011 taxes, you can easily update the info once the IRS has your 2012 data, with the IRS Data Retrieval Tool. Is there a similar update mechanism for the CSS/Financial Aid PROFILE®?
A: There’s no update mechanism for the PROFILE®. After filing the PROFILE® and submitting the data to a school, if a family wants to update the information, the family must print out the PROFILE® data and actually write the corrections on the printout. If the family is simply updating the PROFILE® with tax return information, the school will usually have another process in place to collect that tax return information, so that the family will not need to make corrections on the PROFILE® printout.
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Divorced/Separated Circumstances
Q: I was told that the financial aid application needs to be submitted by the custodial parent in the case of a divorce. What happens if the custodial parent has not filed taxes since 2008 due to limited income that didn't meet the threshold for filing?
A: When the parents of a student are divorced, only the custodial parent completes and submits the FAFSA (Free Application for Federal Student Aid) with his or her information. If the parent has not filed taxes, he or she should indicate non-filer tax status on the FAFSA, and report any income earned within the appropriate income category (wages, untaxed pension, etc.). If the student is attending a school that requires the CSS/Financial Aid PROFILE®, the noncustodial parent will need to report his or her information on the Noncustodial Parent PROFILE®, a separate application. Some schools may also require an institutional financial aid application with noncustodial parent data.
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Q: How does FAFSA identify the custodial parent? In my own case, I have sole physical custody while my ex-husband and I share legal custody?
A: The FAFSA asks the family to identify the custodial parent. That is usually the parent with whom the child lives. So in this case, it sounds like you are the custodial parent. So only you (and your current spouse, if you are remarried) would report your information on the FAFSA. It’s irrelevant that you and dad share legal custody.
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Q: My question is in regards to the CSS PROFILE® and the non-custodial parent information. The CSS PROFILE® asks for information from the noncustodial parent on the Noncustodial PROFILE® about the noncustodial parent’s current spouse if the individual has re-married. Is this information required if the noncustodial parent is in a same sex marriage? This is a grey area where the federal government does not recognize same sex marriages but Massachusetts does. The CSS PROFILE® was requested by schools all outside the state of MA?
A: Yes, you should put the information for you and your spouse on the Noncustodial PROFILE®. If you were the custodial parent and filing the FAFSA, however, you would only report your own information, and exclude your current spouse’s information, as the FAFSA is a federal form and uses a federal definition for marriage.
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Types of Financial Aid
Q: What is the military's "Yellow Ribbon" program?
A:The Yellow Ribbon program was created within the legislation that created the Post-9/11 GI Bill. It provides veterans with funding that covers all or a portion of the tuition and fees not covered by the Post-9/11 GI Bill. Institutions kick in funding, and the government matches that amount. Institutions must volunteer to participate in the program, and each participating institution then decides which veterans will receive the limited funds. Not all veterans qualify either. For more info, check out the GI Bill web site here.
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Special Circumstances
Q: I am confused about the CSS PROFILE®. We applied early action and I am not sure if I need the CSS PROFILE® to be filed right now.
A: Most likely the answer here is yes. If the PROFILE® is required for financial aid for the Early Action process, which is most often the case, then you should file the PROFILE® now. It’s okay to estimate your 2012 income information – you can always update the college in 2013 with exact 2012 figures. But do make sure you file the PROFILE® by the Early Action financial aid deadline (which should be posted by the college), in order to make yourself eligible for all financial aid funds.
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Q: I've defaulted on my own federal student loans. Will this hurt my daughter's chances for federal financial aid?
A: No. A parent's defaulted loans won't affect the eligibility of the student to receive federal financial aid funds. However it could affect the parent's eligibility to receive a parent loan or co-sign on a student loan.
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Q: My husband lost his job in July. So, our income for 2012 is drastically different from what we show on our 2011 tax return. My understanding is we use our 2011 taxes to fill out the FAFSA form, and waiting until our 2012 taxes are done is a bad move. What do you recommend?
A: You do want to make sure to complete the FAFSA by the financial aid deadline. As most families will not have 2012 tax returns completed by most deadlines, it is often recommended that families use 2011 tax returns, as you have heard. This is suggested because parent income often remains constant from year to year. In your case, your income has dropped. You should therefore do your best to estimate your actual 2012 income, and include that information on the FAFSA, instead of referring to the income figures from your 2011 tax return. Colleges know the numbers won’t be exact, but use your last pay stubs from 2012 to determine income figures as close to accurate as possible.
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Q:I heard that Native Americans don't have to report assets. Is that the case?
A: It depends. Native American students should report most student and parent assets, however they may exclude any property received under the Per Capita Act, the Distribution of Judgment Funds Act, the Alaska Native Claims Settlement Act, or the Maine Indian Claims Settlement Act.
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Q: I have a student who is undocumented. He has a social security card but it says for work only. Will this prohibit him from obtaining money through the FAFSA?
A: Unfortunately, as regulation currently stands, your student is not eligible for federal financial aid funds through the FAFSA, as he is not a U.S. citizen or permanent resident. Only U.S. citizens and permanent residents are eligible for federal financial aid funds. If your student did obtain citizenship or permanent residency (acquired a green card), he would then be eligible for federal financial aid funds. This is the regulation as it currently stands, though this could, of course, change in the future. Due to a recent authorization from Governor Deval Patrick, however, undocumented immigrants who have Massachusetts work permits are eligible for in-state tuition in MA. As it sounds like your student does work, he would therefore be eligible for in-state tuition at MA state schools. Some colleges and universities do offer merit aid to non-citizens, so your student could explore those opportunities. And of course we recommend that all students search high and low for outside/private scholarships.
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Q: Do folks with "Green Cards" qualify for any financial aid?
A: Green card holders are also known as permanent residents, and they qualify for federal financial aid funds and most state and institutional funds as well. Permanent residents should always check with schools to see if there are any funds allocated to U.S. citizens only, but most institutions include permanent residents within all eligibility criteria.
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Q: I am a senior in high school and a U.S. Citizen but my parents both live outside of the U.S. and they are not U.S. citizens, so they don't file a U.S. tax form. I currently live with my aunt and uncle and I am 18. How do I fill the parent tax information on the FAFSA? My aunt and uncle are a lot better off financially than my parents so I would like to not use their tax information.
A: You should fill out the FAFSA using your parents' information. Though you live with your aunt and uncle, you should not report their information on the FAFSA anywhere. And even if you are already 18 years old, your parents' information is still required on the FAFSA. Only students over 23 years old do not need to report parent data. Though your parents do not submit a U.S. tax return, do your best to answer the questions on the FAFSA in regards to income earned and taxes paid based on their tax return. You can also submit a copy of their tax return to each of the schools to which you are applying, which would likely assist those financial aid administrators who will be reviewing your file.
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Q: My daughter will be entering college next year, and my son attends college in Scotland. Do I notate on the FAFSA that I will have 2 children in college?
A: Only if the college in Scotland receives Title IV (federal) financial aid funds (currently 15 do). If a sibling attends an institution that does not receive Title IV funds, and this includes U.S. military academies like West Point, the sibling should not be counted in the number in college.
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What Counts as an Asset or Income?
Q: Does having stocks through my employer count within the financial aid application as an asset?
A: Stocks do count as an asset within the financial aid applications, assuming that the stocks do have market value. You should include the value of the stocks within the investments total.
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Q: We are a blended family. I married my husband after his wife and my husband died. All of my children under 18 years old receive social security benefits due to the death of their one parent. What are their social security benefits considered? Are they untaxed social security benefits?
A: Untaxed Social Security benefits are not reported on the FAFSA. However, if any of the Social Security benefits are taxable, they would appear on your tax return and be counted within your Adjusted Gross Income, which is reported on the FAFSA. Likely, however, the benefits your family receives on behalf of your children are untaxed. The CSS/Financial Aid PROFILE® does ask about untaxed Social Security benefits, so if you need to submit the PROFILE® to any school, you will need to report the benefits on that application.
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Q: My partner got some stock money and paid our mortgage off. I now pay him $1000 per month toward my share. What's the best way to have this "debt" recognized by private schools? Should we have our real estate lawyer draw up a document saying that I owe my partner $220,000?
A: As you still owe $220,000 on the home, you should report this figure as debt on your home. When reporting the home value, you should report the value of your percentage of the home (assuming that you are not married to your partner and your partner is not the father of your child applying for aid). You will not need a document verifying this debt amount unless a college or university specifically requests it (possible, but not likely). If this is your primary home, this information will only be requested on the CSS/Financial Aid PROFILE® (and not the FAFSA).
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Q: Hi. I am filling out the CSS PROFILE® for my daughter and I am stuck on where to list an account I have with life insurance money in it. It is considered a "life insurance settlement account" from Metlife and I do list the taxable interest on my tax returns. It is not technically a savings account or a Money Market Account, but it also is not taxable income for 2012, as it was received years ago at this point. Any advice on where it should be listed?
A: Since this life insurance was disbursed to you in the past, it should not be considered income. It should just be listed as a parent asset (as you would list other monies in a bank account).
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Q: My primary residence is a duplex. I live on one side, my sister on the other. I do collect rent and report this on my taxes, so it affects my AGI. Do I also include the rent on the untaxed income section?
A: The rental income from the duplex will already be included in your AGI, so you do not want to report it as untaxed income, or you will be double-counting the amount. I assume that you own the portion of the duplex in which your sister lives? If that is the case, you should count the value of her side as other real estate and report it on the financial aid applications as such. Your side will count as your primary home, so you will not report the value of your side on the FAFSA (though if you have to complete the CSS/Financial Aid PROFILE®, you'll need to report the value on that application).
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Q: If a parent works at a residential boarding school and lives in school housing as part of an expectation of employment, does he have to report it on the PROFILE® or FAFSA?
A: Yes, often the annual value of living in residential housing for a job is listed on the W-2 under Box 14 as a housing allowance. This amount should be listed both on the FAFSA and the PROFILE® under the parents’ untaxed income section referencing housing allowances.
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Q: My mother started a 529 fund for my daughter (her granddaughter), with my mother as the "owner" and my daughter as the "beneficiary" (so her social security number is attached). Will we need to disclose this on a FAFSA if no money is withdrawn?
A: If your mother (the grandmother) is the owner, then this fund will not need to be reported on the FAFSA if unused. If your daughter does use the funds for college, the amount used will need to be reported on the following year's FAFSA as your daughter's untaxed income under "Money received, or paid on your behalf (e.g., bills), not reported elsewhere on this form."
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Q: My husband is self-employed and his income is listed under Business Income on our Federal Income Tax Return. Do we include it under Wages, Salaries, and Tips for him on the FAFSA - or does it just show up in the Adjusted Gross Income? Or is there somewhere else we should put it on the form?
A: Your husband's business income will be included in your Adjusted Gross Income. However, you will also include it in the question "How much did your father/stepfather earn from working in 2012?"
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Effect of Outside Awards or Awards After Initial Decision
Q: If my son has already qualified for financial aid and has received a small inheritance how will that affect his aid package?
A: Any inheritance your son has received counts as an asset in his name. Did you report the inheritance on his financial aid application for 2013-14? If not, you will need to correct his financial aid application and add the inheritance as a student asset. Will he need to report the inheritance on his 2012 tax return? If so, that amount should appear under his 2012 income as well. If your son received need-based financial aid (as opposed to a merit scholarship), his eligibility for need-based financial aid will change based on the receipt of this inheritance, and his financial aid could be reduced.
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CSS/Financial Aid PROFILE® Specific
Q: I am confused about the CSS PROFILE®. We applied early action and I am not sure if I need the CSS/Financial Aid PROFILE® to be filed right now.
A: Most likely the answer here is yes. If the PROFILE® is required for financial aid for the Early Action process, which is most often the case, then you should file the PROFILE® now. It’s okay to estimate your 2012 income information – you can always update the college in 2013 with exact 2012 figures. But do make sure you file the PROFILE® by the Early Action financial aid deadline (which should be posted by the college), in order to make yourself eligible for all financial aid funds.
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Q: My question is in regards to the CSS PROFILE® and the non-custodial parent information. The CSS PROFILE® asks for information from the noncustodial parent on the Noncustodial PROFILE® about the noncustodial parent’s current spouse if the individual has re-married. Is this information required if the noncustodial parent is in a same sex marriage? This is a grey area where the federal government does not recognize same sex marriages but Massachusetts does. The CSS PROFILE® was requested by schools all outside the state of MA?
A: Yes, you should put the information for you and your spouse on the Noncustodial PROFILE®. If you were the custodial parent and filing the FAFSA, however, you would only report your own information, and exclude your current spouse’s information, as the FAFSA is a federal form and uses a federal definition for marriage.
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Q: If a college my child has applied to is on the CSS PROFILE® list, that means the college requires both the FAFSA and the CSS PROFILE®, correct?
A: Yes, if the college requires the PROFILE®, it also requires the FAFSA, as the FAFSA is required at every college and university.
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Q: We learned that if you submit the FAFSA as close as you can to Jan 1, based on 2011 taxes, you can easily update the info once the IRS has your 2012 data, with the IRS Data Retrieval Tool. Is there a similar update mechanism for the CSS/Financial Aid PROFILE®?
A: There’s no update mechanism for the PROFILE®. After filing the PROFILE® and submitting the data to a school, if a family wants to update the information, the family must print out the PROFILE® data and actually write the corrections on the printout. If the family is simply updating the PROFILE® with tax return information, the school will usually have another process in place to collect that tax return information, so that the family will not need to make corrections on the PROFILE® printout.
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Eligibility Determination
Q: How do I reduce my EFC?
A: The EFC is based primarily on income, assets, number of people in the household, and number of students in college. So one of those factors would need to change for the EFC to be affected. Lower income and assets would obviously lower the EFC, while a larger number in the household and in college would also lower the EFC. However all of these factors are hard to adjust. Colleges verify this information, and you obviously want to report accurate figures. So there is not much you can do to lower your EFC.
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Q: Do you need to be a matriculated student to receive a MEFA loan? I want to register for three classes, but haven't been accepted into a program yet.
A: You do need to be a matriculated student to be eligible for a MEFA loan. You must be enrolled at least half time in an accredited degree-granting program at a non-profit college or university.
