HOME

Kentucky High School Financial Planning Home Page

Back to E-Mail Updates page

Weekly Update # 180—The Clock Has Begun to Complete FAFSA Application

Message from Flashman: This week’s update is a follow-up to Update # 179. With more money going to need-based aid, middle-income families need to complete the FAFSA application as early as possible.

 

Web Site Pick of the Week:

http://www.kheaa.com/

The Kentucky Higher Education Assistance Authority (KHEAA) Web site has all the information on Kentucky financial aid, including the KEES program and need-based aid. Links for these programs appear on the left side of the Web page. The site is important because many students might not be aware of this funding, or of Federal Pell grants.

 

In the New$… Part Two: The Clock Has Begun to Complete FAFSA Application

by Robert H. Flashman, Ph.D., University of Kentucky Cooperative Extension

Families who make too much money to qualify for the University of Louisville’s Cardinal Covenant or the plan now being proposed for the University of Kentucky—which will pay almost all of an entering freshman’s college expenses (See Weekly Update # 179 for Part One of this discussion)—can still get help in paying for all types of education beyond high school.

Last year around $135 billion in financial aid was distributed, according to the College Board. What might surprise you is that 41 percent of students attend two-year colleges. “The average full-time student enrolled in a public two-year college ... receives about $2,200 in grants and tax benefits, which reduces the average tuition and fees paid from the published price of $2,272 to a net price of under $100” (College Board).

The first step in the financial aid process is to complete the Free Application for Federal Student Aid (FAFSA) to see if you qualify for funds. This form is used by postsecondary schools if you are applying for grants, student loans, and work study or University aid in the form of scholarships. This also includes government loans and grants and various merit awards. Most schools award aid on a first-come, first-served basis. Schools have different “priority deadlines” for submitting the FAFSA, so you first need to find out the earliest and latest date of all the schools where you are applying to make sure you meet the deadlines.

Most school guidance counselors have the FAFSA form; or, if you have access to a computer, you can file online. Even if your family’s household income is over $100,000, you might qualify for financial aid at many private colleges, especially if you have a sibling also going to college.

Even if you don’t need loans, you can fill out the FAFSA to apply for scholarships, work study, etc., and you can refuse the loans if you don’t want or need them. Filling out the FAFSA does not obligate you to accept the loan.

Information you will need to complete the FAFSA:
- Student driver’s license and Social Security card
- Income tax returns or as close an estimate a possible
- W-2 forms and other records of money earned
- Parents’ tax return (if dependent student)
- Current bank statements
- Records and documentation of other untaxed income received
- Records of investments (stocks, bonds, etc.)
- Current mortgage information
- Your alien registration card (if not a U.S. citizen)
- Business or farm records (if applicable)

If the priority deadline is approaching, you can estimate the needed information (use last year’s tax info if the situation is similar). You can then update the numbers when you get them. Your parent(s) also might want to go to www.Finaid.org to calculate family contribution on their calculator to get an estimate of how much your family will be expected to pay for college expenses.

Source: (1) “2006-07 College Costs: Keep Rising Prices in Perspective,” The College Board. http://www.collegeboard.com/student/pay/add-it-up/4494.html; and (2)
“FAFSA,” Financial Tip of the Week (1-04-07) Blog written by Dr. Mark Oleson Office for Financial Success , University of Missouri. http://financialtip.blogspot.com/2007/01/fafsa.html

 

Discussion Questions:

1.) Should KEES money be increased because of higher tuition fees?

Yes ___  No ___ Reason why:

 

2.) Do you think it is a good idea to raise taxes again on cigarettes to provide more funds for K-12 education?

Yes ___  No ___ Reason why:

 

3.) Do you think it is a good idea to raise taxes again on cigarettes to provide more funds for postsecondary education?

Yes ___  No ___ Reason why:

 

4.) If the state legislature passes another increase in cigarette taxes in order to fund educational needs, should the governor veto the bill?

 

 

Follow-up Activity: Sticker Shock Quiz- How Much Does College Really Cost?

http://www.collegeboard.com/student/pay/add-it-up/638.html

 

Second Quiz, from College Board:

This appears on the same Web site as a Quiz in the left column. To get the correct answer, complete the quiz on the Web site.

The majority of financial aid comes from:

___ colleges

___ state governments

___ federal government

___ private sources

 

Kentucky High School Financial Planning Program

http://www.ca.uky.edu/fcs/hsfp

The purpose of the HSFPP weekly financial updates and Web site is to assist county Extension agents, credit union educators, high school teachers, and parents who home school their teenagers so that they may improve the economic well-being of our teenagers; and also to show educators how the HSFPP and the weekly updates meet Kentucky core concepts. The Web site and weekly updates are provided by the University of Kentucky Cooperative Extension Service, and are free to all educators. The list of core concepts and order form for free program materials including the student guide and instructors manual can be found on the Kentucky HSFPP home page.